Gold price technical analysis 15 – May, 2013 — The pair of gold / U.S.Dollar watch unstable week, in which Gold price records a decline for the third consecutive day. The strength of the U.S.Dollar support the down channel of Gold price, in which hopes about an unexpected positive data is going to be released from the US government by the end of this week. It seems that the U.S.Dollar returned its glory again the issue which could lead for more pressure on gold price and take it to the down channel.
Japanese and U.S stock Catch the eyes
The japanese stock market attracted a lot of investors, after the Japanese government followed a plan to decrease the value of the Yen. The idea which tempted the investors from Asia to invest in the Japanese stock market. The strength of the U.S stock market pushed the investors to escape from weak Euro zone and head to the U.S stock. Frankly I can say it is a good choice. For sure a lot of Cash flow into both markets and skipped investing in gold, the issue which led to a decline in Gold price.
A lot of expectation from analysts and investors expect that the U.S Federal Bank will cut the monetary stimulus by the end of May, I think too. The pair of gold / USD is trading currently under the level of $1420 USD/Ounce. If the down channel controlled the market we had to monitor the level of $1400, 1395 and 1390 USD/Ounce of gold, in the case of gold price succeed to pass the level of $1430 USD/Ounce of gold, I think we could monitor the level of $1440 USD/Ounce of gold .
From my own point of view, it is dangerous to take the risk and go with Long position, today try to keep on the market flow plus the short position trading. Market fluctuate today and we will watch more fluctuate by the beginning of the US trading session.