Gold price technical analysis 16 – April, 2013 — the pair of gold / dollar continue to fall yesterday, and as a result, it has returned to the level that we have not seen since the beginning of the year 2011.
Pair reached the level of $ 1339 USD/Ounce on the back of weak Chinese economic data, and monetization of hedge funds and technical selling pressure. Disappointing data on GDP and industrial production data from China, increased concerns about economic growth. In the meantime, said a group of companies “CME” that it will increase the marginal demands on gold trading by 19% with the closing session today.
In the previous analysis, I said that I was expecting the prices to the area $ 1325/20 USD/ounce and $ 1266 USD/Ounce, but to confess that I did not expect the great collapse happened. Recent price movement shows the lack of buying and they did not choose the bottom yet.
Since this movement is not just a simple correction, buying gold at this point will simply be a risky bet. With this, I will, I will monitor the support area between $ 1333 and 1320 USD/Ounce today. This area may be the area that sellers may wish to collect profits from them. In that case, there is a lot of resistance at $ 1371, 1381 and 1393 USD/Ounce.