Gold price technical analysis 18-2-2013

Gaining profit take place in the market before the US data

Gold settled at $ 1,608.78  USD/Ounce on Friday, the least settlement since Aug. 18.

Hack below the lowest level for January 4 at $ 1625.64 USD/Ounce it began selling gained momentum after recent reports issued by the United States, that made additional statements that the world’s most powerful economy continues to recover. Regional industrial issued study of the Federal Reserve Bank of New York and was better than expected (10 versus 7.8 previously). And report from Michigan University showed consumer sentiment index rose to 76.3 from 71.3.

Apart from strength in the U.S. dollar, says media reports that large institutions have reduced their exposure to shaky investor confidence in gold. Gold passes in a downward channel since the date of 5 October when he arrived at the level of 1795.75. Several weeks ago

You may say that the resistance at $ 1685 USD/Ounce was tough for the progressive movement, and that the closure below the level of $ 1660 USD/Ounce was the sale process and clear. In the long term, the pair will remain Descending unless the penetration happened out of the falling channel that moves prices since October. Foam that there is some support levels below current levels, there is a good chance to see the pair back down even more, falling to the bottom of the channel.

I think that we will face strong resistance between $ 1620 and $1625 USD/Ounce if prices fell by a free fall next. You should also be aware that there is a temporary resistance at $1617.53USD/Ounce.

Historically, prices had difficulty with $ 1625-1620 USD/Ounce area many times during the summer of 2012, therefore, will need upward movement to work hard to penetrate this region. This area will be an important key for the continued move upward, and unless prices managed to climb over this area, I think we will get there in the end to $ 1588 and 1585 USD/Ounce.

Supposed to provide areas $1595 and 1588 USD/Ounce some support on Monday, but if the downward movement was able to pull the pair to below $ 1585, 1572.55 and $1563 will be the next potential targets.