The precious metal still under pressure, especially after the after the data of the housing sector and consumer confidence, which came better than expected, USA largest economy in the world showed unexpected improvement, and that led to confirmation the expectations of that the Fed market to reduce the facilitation this year, the issue which lead to a decline in the yellow metal by 3.38%
Data issued by the “Conference Board” showed that the consumer confidence index rose to 81.4 in June from 74.3 in the previous month and said, “Department of Commerce” that new home sales rose 2.1% to an annual rate at 476 thousand of 466 thousand house. A report about the durable goods showed that, a rose by 3.6% during the month of May, and it was not expected.
In the meantime, the large financial institutions continued by reducing its forecast for 2014 and 2015? During the Asian trading session, today, the chart indicate that the short-term downward movement continues to dominate over the market. The pair of gold / U.S. dollar testing support at $ 1225 USD/ Ounce. The market overview looks that, it is heading to the level of $1218 USD/ Ounce if the Burgin hunters did not interfere today.
The technical chart show that, we are in the bottom of the down channel, at the level of $1228 USD/ Ounce if we hack below we are going to be waiting for the level of $1218 and 1200 USD/ Ounce. In the case of hacking below 1200 USD/ Ounce, it means that we are heading to $1160, 1150 USD/ Ounce according to Fibonacci study.
In the case that, the gold price rebound because of the Burgin hunter which could enter the market today, we could see the precious metal return to the level of $1250, 1276, 1280 USD/ Ounce of gold. The investors had to follow the flow of the market which is commonly in the down trend during today trading session.