Gold price technical analysis 22 – May, 2013 — The pair of gold / U.S. dollar close at a price lower than the opening price yesterday. In which the upward movement failed in breaking through the level of $1400 USD/Ounce again.
The upward movement failed to push Gold price toward the upward movement above the barrier of $ 1400 USD/Ounce for more than 4 days. The main event today will b a certificate of the Federal Reserve Bank of the U.S. charmin, “Ben Bernanke” in front of “Joint Economic Committee” and the announcement of the Minutes about the meeting of the Federal Open Market which was held on May 1.
As the U.S. dollar gets some strength from the growing perception that, the participation of Fed is considering an early start to reduce the quantitative easing program, investors will look for any hints about changes in financial monetary policy of the Federal Bank. Although there is a warning by the agency of “Moody’s” that, reducing the credit rating of the U.S bond this year, Could lead to the end of any improvement happend in gold price.
Until any change of the technical outlook, I will sell at any improvements happend for gold price. gold price will be on the upward movement that until it hacked resistance at the level of $1400 USD/Ounce of gold and stay above it in order to get more power. In that case, there will be resistance at $1411, 1430 and 1442 USD/Ounce. any change in the monetary policy for the Fed, could lead to a direct decline in gold price.