Gold price technical analysis 21 – May, 2013 — The pair of gold/ USD closed on a positive session yesterday after seven consecutive days of losses, as investors searched for some profits before the Federal Open Market Committee meeting release it is new plan.
Federal Reserve will release the minutes of its new policy on the meeting of May 1, Wednesday. At the same day, the Federal Reserve Chairman Ben Bernanke’s remarks before the shared Economic Committee about the economic outlook for the country (USA).
The pair of Gold/ USD is quite bearish in recent times as the market conditions (whether basically or technically ) were working against gold price for this complicated situation, we see investors in cautious mode (on the assumption that the president Ben Bernanke will remain dovish) is not a big surprise for us. It seems that gold price reversed after failing critically and breaking the lowest level of support of $1336.50 USD/ Ounce of gold. However, the area of $1398 – 1400 USD/Ounce this position can slow down the progress of the bulls in the short term. If the market breaks through a new level, there could be a run all the way to the level of $1430 – 1442 USD/Ounce, this area that we encountered both support and resistance during the past 4 weeks.
Gold price will work along the way for a return to the area of $1430 – 1442 USD/Ounce of gold we have encountered on the support and resistance during the past 4 weeks. But investors will try to make some profit, by some technical buying and fast gaining profit two processes will take place in the market.
Investors will look to buy and then they will sell fast to gain some profit, before the new Federal bank meeting no one could know after the meeting what is going to happend. stay with flow of the market and never take a high risk especially today because we are going to watch a decline in gold price and by the beginning of New York market we could watch a rise.