Gold price technical analysis 14 – june, 2013 — Gold price lost some of its strength, yesterday, against the U.S Dollar. Gold price still in the same range of trading for the last three days.
The pair of gold/ USD traded at a low level, at the average of $1374 USD/ Ounce of gold. Especially after the positive data from USA, about the improvement of the retail. Which is a good indicator for the improvement of the U.S Dollar, the U.S Dollar was pushed up after the improvement in the retail by 0.6% and the labor market in USA also, had an affect on gold price, yesterday. According to the U.S Data the unemployment fell by 12000 to 334000. The issue which added more pressure on gold price.
The gold investors maintain their focus on the possibility that the Fed will reduce the enormous original purchases in the few coming months. Because of that, I think that prices will be range bound until the meeting to implement, the monetary policy of the Federal Reserve Bank next week.
Expectations by the slowdown of the Chinese economy, and the slowdown in demand from India rates will continue the pressure on gold price. It has been supportive in the recent times, gold has been providing heavy resistance level at $1420 USD/ Ounce of gold and the area around $1370 USD/ Ounce of gold. Technically, it will be difficult for gold dealers in such a narrow trading range for the short term. But in the end, gold will soon reach a point where it will have simply penetrate one way or the other.
Gold price could give the bulls enough power to challenge obstacle of $1400 USD/ Ounce of gold. On the other hand. the support levels located at $1370, 1360 and 1354.50 USD/ Ounce of gold. If we break below $1354.50 USD/ Ounce of gold, support may increase sharply the downward pressure.