Gold price technical analysis 14 – May, 2013

Burgin hunter is going to fix gold price or not?

Gold prices closed at a level lower than the opening price, with the growing expectations that the Fed will reduce the pace of monthly purchases from assets.

Market participants believe that the central bank prepare the arena to announce soon that he is out from bond-buying program. Recently, the statements issued by the central bank officials showed that several members of the Federal Open Market Committee were worried about the risks of high more quantitative easing.

If the Fed stopped providing cash, this could lead to a negative impact on gold prices. by looking on the market we could  indicates that, the pair of gold / U.S. dollar is trying to form a bottom around $1430 USD/Ounce of gold, but we are currently stuck in a deliberative tight scope, as the market simply does not have any catalyst to push prices in either direction.

Although the Asian demand for physical gold has been strong in the recent days, this situation will not last long, and is likely for the major stock market to push over gold market, the issue which will support gold price to take the down channel again.

If the down channel for gold price succeed to take the market on her wave, and prices fell to below the support level at $1430 USD/Ounce, it is quite possible to see the pair re-test the level of $1411 and 1398 USD/Ounce.

it is expected to get to the level of $1425 USD/Ounce of gold today, keep away from the market today.