Gold price technical analysis 17 – May, 2013 — The pair of Gold / U.S. dollar get down for the sixth straight session, but found some support above the level of $1363 USD/Ounce.
Gold prices traded at a low level $1369.72 USD/Ounce, its lowest level since 4 weeks, before recovering to $1388 USD/Ounce. U.S. dollar lost its support, where the data is coming from the world’s largest economies to disappointing markets.
According to the Labor circular figures, the number of Americans citizens of the progress applications for unemployment benefits for the first time rose from 32,000 to 360,000. Data announced by the Federal Reserve Bank of Philadelphia revealed that the state’s manufacturing index fell to -5.2 from 1.3 during the month of April, the Bureau of Labor Statistics said that the consumer price index fell 0.4%.
Although the data came worser than expected, it led to the beginning of the gaining profits, but to provide statements of “John Williams,” chairman of the Federal Reserve Bank in San Francisco, limited the reaction of market participants. He said that the Fed may begin mitigation of lax policy during the summer.
The price movement that we’ve seen in the month of April (hack to below the level of $1530 USD/Ounce, which was the bottom of the region to strengthen huge) was an important event in terms analytics, and leads me to believe that we wil watch un clear gold price, the downward movement will be the dominant over gold prices in the longaverage.
I think that the pair of gold / U.S. dollar will test support at $1363, 1365 and 1349 USD/Ounce. On the other hand, breaking back above the level of $1400 it is possible to begin the process of moving to the level of 1411 or higher. In that case, expect to see more resistance at 1420 and 1426 USD/Ounce.