Gold price Technical analysis 13 – June, 2013 — The pair of gold / U.S. Dollar close at yesterday’s session higher slightly higher than the opening price. as the significant decline in stock prices and the USD / JPY, enticed some investors to return to the gold market.
Index “Dow Jones” industrial below the 15,000 mark yesterday, and today, Japan’s Nikkei is trading below the 13,000 mark (currently at 12735.70, by a loss equal to 4.17%). Seems that the fear factor back to the markets, which is supposed to support gold price in the short term.
However, there are other important elements (such as concerns about the slowdown in the Chinese economy and the growing expectations, that the U.S. Federal Reserve Bank will reduce the bond-buying program), which will continue to put pressure on this pair. For this reason, I think that the pair of gold / U.S. dollar will move back and forth for some time. The support area between $1354 and 1338 USD/ Ounce of gold, it looks strong now, but I think also that the region from $1442 to 1460 USD/ Ounce of gold, will provide strong resistance.
From a daily perspective, I will continue to monitor the levels of $1400 and 1387 USD/ Ounce of gold. In case of upward movement has been able to defend the level of $1387 USD/ Ounce of gold and was able to get through the level of $1400 USD/ Ounce of gold, I will search for the level of $1408 , 1413 and 1420 USD/ Ounce of gold. If prices rose above the $1420 USD/ Ounce of gold which will not happened today, the pair may extend its gains and aimed at the level of $1442 USD/ Ounce of golf. Below the level of $1387 USD/ Ounce of gold, there will be support at $1376, 1370 and 1360 USD/ Ounce of gold.