Gold price technical analysis 16 – May, 2013 — The pair of Gold / U.S. dollar drop for the fifth day in a row, as investors’ confidence in gold eroded after failing of the upward movement in maintaining prices above the level of $1430 USD/Ounce of gold.
Gold closed at $1392.75 USD/Ounce of gold. Gold price had reached a the lowest settlement approximately in 4 weeks. The pair of gold / USD is trading in a flat channel during the past two weeks, breaking below the support level at $1442 USD/Ounce noted that, Gold price rise was refused from the investors. In the previous analysis, I used to say that the technical outlook remained regressive Based on the measurements, the downward movement will target $1375 USD/Ounce in the near future.
Well, now we are back to this level, and we have even hacked the bottom. There is a small support at the level of $ 1386 USD/Ounce, which may start a kind of process of collecting profits. For this reason, it is possible to see the prices of gold re-visit the area between $1408-1411 USD/Ounce before heading down. From a technical point of view, the daily closing below $1398 USD/ Ounce will indicate that the upward movement has lost its strength and reinforces the idea that the recent price movement was not more than just a simple correction. Key levels should be monitored today will be $1370 and 1411 USD/Ounce.
$ 1411 USD/Ounce of gold is an expected level IF burgin Hunter from USA decided to get into the market.
Tip for investors sell in may and go away. do not take an action today because gold price today is not safe .