Gold price technical analysis 21 February 2013,the sharply retreated of the gold / U.S. dollar pair, and traded at low level reached $ 1558.46 USD/Ounce of gold yesterday as the pair accelerated its decline after that gold penetrated the support at $ 1588 and that was the bottom of the descending channel.
$ 1558.46 USD/Ounce is the lowest level since July 12. The main event yesterday was announced a minute after meeting the Federal Open Market Committee, which was held between 29 and 30 January. Where he showed minutes of the meeting that many of the participants have shown concern about the potential risks of further quantitative easing, hinting that the central bank may stop or slow the asset purchase program soon (before reaching the goal of a steady increase in jobs by 200 thousand jobs per month).
A number of participants said that the continuous assessment of the effectiveness, the costs and risks associated with the purchase of assets may lead the Commission to be reduced gradually or terminate before buying to make sure to achieve a significant improvement in the outlook for the labor market …And officials emphasized that the Commission must be ready because the diversity of the pace of asset purchases, either in response to changes in the economic outlook, or based on its assessment of the effectiveness and costs of such purchases. “As stated in the record.
Although I was expecting the prices to be $1564 USD/Ounce at the end of it, but I did not think that we get there in a short period. If you can not upward movement of the pair back above its level, it is likely that the pair will test the level of $ 1554 USD/Ounce and then decline on 28 June at 1547.92 USD/Ounce.
When we hacked below the $ 1547.92 USD/Ounce level, levels will be at $ 1545 and 1532 USD/Ounce are the following objectives that must be on the downward movement exceeded. . If there is a recoil for the pair of gold / U.S. dollar from here, we will watch a resistance at $1564, 1570.23 and 1576 USD/Ounce of gold.