Gold price technical analysis 20 – March,2013— Seems that the pair of gold / U.S. dollar halted its escalation during the Asian trading session today at the resistance level was $1615 USD/Ounce of Gold after 4 consecutive days of profit.
Recently, there has been a continuous upward pressure on gold as investors became more concerned, especially since the Italian elections. Yesterday, Cypriot parliament rejected a tax on bank deposits that was needed to ensure the European Union’s aid.
The situation in the euro zone became messy and began the principle of the euro currency seems like a failed experiment. The uncertainty about the U.S. budget talks in addition to the fact that the Fed will keep monetary policy loose, looks are all supportive for gold. It must be remembered that the Fed’s policy statement will be issued today with the end of the meeting, which lasts for two days.
In the meantime, the headlines from the euro zone will likely continue to raise pair of gold / U.S. dollar before the press conference which will be held by the chairman of the Federal Reserve Bank ” Brenanki”. Technically, in the short term, will mislead a pair of gold / U.S. dollar ascending unless prices fall.
There is clear support at previous resistance levels at $ 1606 and 1598 and 1685 USD/Ounce. Hack below 1585 will stir things for the benefit of downward movement again, due to gaining profit expected especially from Asia.