Seems that the pair of gold / U.S. dollar has stopped falling at the level of $1603 USD/Ounce after 5 consecutive days of losses.
Gold prices falls from the last october 2012 on the back of upbeat economic data from the United States and rising of the housing sales and auto which show an improving economy, and there are additional indications that the labor market is stabilizing. In addition, the fading concerns about inflation and the global economic outlook improved, all hurt in the safe attractive asset enjoyed by gold.
Gold retreated / U.S. dollar by about 4.5% since January 1, as investor sentiment toward more traditional assets, such as U.S. stocks and Japanese, improved dramatically. I still think that the pair of gold / U.S. dollar will be limited to between 1626 and 1588 this week, where I expect to respect markets falling channel that started in October.
Technically, I think that the downward movement will continue in control of the pair for the long term. Price of gold returned for a down average today to reach $ 1685 USD/Ounce of gold
Although the technical expectations very regressive, that throwback to the level of $ 1626 USD/Ounce of gold before the sale process other excessive, will not be a surprise. If the upward movement was able to hold above the level of $ 1603 USD/Ounce of gold, it is possible to see another upward attempt to exceed the level of $ 1615 USD/Ounce of gold. After that, there will be more resistance at $ 1618.83 and 1625.64 USD/Ounce of gold. With this, if its increased in the movement of the downward selling pressure, gold prices will fell to below $ 1603 USD/Ounce of gold, expect support at $1 597.77 USD/Ounce of gold in the global markets.
Hack below the 1597.77 level will indicate that we are heading to 1588. Today, participants will focus on the market for PPI numbers, and building permits and the minutes of the meeting of the Open Market Committee of the reserve Alfdrrala 29-30 January.