After a temporary halt on Tuesday, gold prices continued to move higher yesterday.
And managed the pair of gold / U.S. dollar from breaking back above the resistance level at $ 1430 USD/Ounce of gold, as the U.S. dollar fell after data released by the Commerce Department, which showed that demand for durable goods fell last month.
According to yesterday’s data, durable goods orders fell by 5.7%. In the case of weak economic recovery, it will not provide any Fed signals on any early withdrawal of quantitative easing at the next policy meeting. Physical demand on metallic gold gives moral support, but we can not ignore the fact that prices penetrated below the large consolidation area. For this reason, I believe that the probability of a further decline (long-term) is still technically exist.
On the other hand, expect a fall in gold prices down to the level of $ 1000 USD/Ounce would not be logical. Looking central banks around the world to increase the share of gold in their reserves of assets and this could limit the decline because they could be a great buyer. In the meantime, traders shorter periods are likely to enjoy Ascending move towards the level of $ 1455 USD/Ounce.
I believe that this level will be important for the continuity of escalation. And if the upward movement was able to hack and hold above this level, it is likely that they (investors and central banks) will defy the downward movement in $ 1469/1473 USD/Ounce. Unless they failed to penetrate the level of $ 1444/1455 USD/Ounce, it is possible that reflected the direction of the pair of gold / U.S. dollar and to test support at $ 1411, 1398 and 1363 USD/Ounce.