Gold price technical analysis 13 – May, 2013 — the pair of gold / U.S. dollar recorded its first weekly loss in 3 weeks, as the strong improvement on the U.S. dollar caused the decline in gold price. Friday’s settlement was the lowest closing price since April 24.
Gold price is exposed to a pressure since the time due to the continued improvement in the U.S. data and expectations that the Fed will reduce the quantitative easing before the end of 2013.
Since the quantitative easing (printing money) was the main engine for gold prices since 2008, the market reaction may appear stronger if the Fed to reduce its monthly purchases of assets. Media report says that Fed officials are focused on finding a strategy for the way and time to get out of documents purchase program, which has had a strong impact on the market as well.
I think that the decision-makers must be very careful at this point, as we always say, does not favor the replacement market expectations vague. Seems that whenever gold prices fell, the greater the more increase of the physical demand on gold, but at the level of rolling retail. So there is a great demand by central banks and big investors on gold, the pair of gold / U.S. dollar will not be able to pull himself from the grip of the downward movement.
From a daily perspective, resistance in the higher level $1454 and 1458 and 1476.50 USD/Ounce of gold. In case we hacked level resistance $1486 USD/Ounce and we were able to withstand it, it is possible then that we test the level of $1532 USD/Ounce but we are in a fluctuate area. In the event-driven prices resumed its downward pattern over the last few days and closed below the $1442/1438 USD/ounce of gold, I will monitor $1422 and 1411 and 1398 USD/Ounce. Closing below $1398 USD/Ounce will indicate that we are heading returning to the level of $1363 USD/Ounce of gold at least.(you can ask any question about gold price @Melkirsh any time, you are welcome.