The pair of gold / U.S. dollar closed on Tuesday’s session at a price lower than the opening price after 5 consecutive days of gains. Investors turned to the relative safety of the U.S. dollar after the PMI data from China and the euro zone came below expectations.
Decline in the industrial index of the purchasing managers’ for HSBC to 50.6 from 51.4, adding to concerns about the world’s second-largest economy and second largest consumer of gold in the world. an index advertised by ” Markit ” showed that economic activity of 17 countries in the euro area continues to decline. Although these reports have helped the U.S. dollar to gain more rise, but the upward movement of the gold price managed to keep the price of gold within the range level of support at $ 1411 USD/Ounce of gold.
The pair of gold / dollar rose above the cloud which gold price formed from an obvious gold price in the last two weeks, although above the level of support of $ 1400 USD/Ounce of gold, but in order to gold price to get stronger activity, gold price will be on the upside movement to pay prices above the level of $ 1430 USD/Ounce. I think that the hard hack above this level will give more upside movement of the power that they need to visit the level of $ 1444 and 1455 USD/ounce.
Daily closing above the level of $ 1455 USD/ounce of gold, it is possible to extend this decline. However, in the event of upward movement faced strong resistance and prices began to decline, we will monitor the region between $ 1411 and 1398 USD/ounce will be the main area on the way down. Hack below $ 1398 USD/ounce of gold could be a confirmation that the activity turns into a descending again but not today.