Gold price technical analysis 23 – May, 2013 — the pair of Gold / USD passed by a regressive session, where the projections provided by reducing quantitative easing further support the U.S. dollar for the short position yesterday.
Gold price traded at high level $1414.28 USD/Ounce of gold, but prices returns fell all the way down to $1345.50 USD/Ounce before the chairman of the Federal Reserve Bank, “Ben Bernanke” failed to provide a clear overview and that was ponders the markets. “Bernanke” said that the central bank will continue buying securities until the labor market outlook improved significantly in the context of price stability (The Fed is currently buying $ 40 billion a month of securities backed by mortgages, and $ 45 billion dollars per month of long-term securities for treasury).
In other words, on the upward movement to push gold prices above this level ( $1411 USD/Ounce) in order to get some strength and support. In the event if the upward movement managed to push fold price up , you will found resistance at the levels of $ 1384.40 and 1400 and 1411 USD/Ounce of gold. Just in case there was a daily closing above the level of $1400 USD/Ounce of gold we will change our out look on the short term position. In case gold price tested the lowest level of yesterday at $1354.50 USD/ounce, I will monitor $1348, 1336.50 and 1320 USD/Ounce but it will not take place in gold market today. As the market sentiment driven tapers expectations, I think that the expected jobs data today will have a greater interest than usual because it will set the USD value, and for sure it will set Gold price.
TIp for trading gold. take a short position until the labor data.