Gold price technical analysis 21 – March, 2013

Raw Gold

Gold price technical analysis 21 – March, 2013– the pair of gold / U.S. dollar close today at a price lower than the opening price in the hope that the leaders of the European Union will reach an alternative solution to Cyprus in order to restore investor confidence again.

Yesterday, the Federal Open Market Committee announced that the central bank will keep interest rates near zero as long as the unemployment rate remained above 6.5% and inflation to be less than expected 2.5%. Although the Commission stated that the Fed will continue its asset purchase program Monthly $ 85 billion (40 billion of securities backed by mortgage and $ 45 billion of Treasury securities), it has been said, “Ben Bernanke:” As we progress towards our goals, it is possible that we adjust the flow rate for purchases from month to month so Nair appropriately the amount of adjustment. We believe that it makes sense to be changing our policy is that the rate of flow of purchases respond in a way that continues more or more sensitive to changes in expectation. ”

May be thinking more quantitative easing as a supportive factor for gold because it is equivalent to the printing of money. With this, this may cause it also in the flow of more money to the U.S. stock market instead of the gold market.

For this reason, I will continue to monitor the U.S. markets and a pair of U.S. dollar / yen. In the meantime, it seems that a pair of gold / U.S. dollar is trying to be a kind of base during the Asian trading session today. Prices follow a bullish channel since March 8, when taking into consideration the fact that the husband was descending during the past five months, be a logical reaction. In any case, I think that it is too early to say whether we will stay in the area this huge consolidation (roughly between 1525 and 1800) and trapped by the husband several months ago, or whether we will see a simple retreat.

I think that the pair of gold / U.S. dollar will remain upward while trading in a bullish channel, at least in the short term. In order to get more power, the upward movement should hack through the resistance level at 1615 before the challenge of downward movement in $1620 and 1625.64 USD/Ounce. If downward movement has increased pressure, I expect to see support at $ 1602, 1598 and 1593 USD/Ounce. Daily closing below $ 1585 USD/Ounce will confirm that the upward movement is losing its strength.