Gold price technical analysis 26 – March, 2013 — the pair of gold / U.S. dollar watched a descending day, having led a deal at the last minute to avoid Cyprus falling into a major crisis to reduce the attractiveness of gold as a safe asset.
The pair traded at a low level reached $ 1589.87 USD/Ounce before recovering to $ 1607 USD/Ounce. Prices were slightly downward during the Asian trading session and now we test Support level / resistance at $ 1602 USD/Ounce. Although the initial optimism made on heavy selling which lead to a decline in Gold price.
I think that the pair of gold / U.S. dollar will find support between $ 1616 and 1585 USD/Ounce in the near future. If the upward movement was able to control and prices began to rise, will be here two main levels of resistance, for that I will focus on them, and the level of $ 1616 and 1625.64 USD/Ounce.Upward movement should lead the pair back above the level of $ 1626 USD/Ounce, I think that the level of $ 1635 USD/Ounce will be reached within a short time.
Down movement, I think that the region between $1602-1598 USD/Ounce will be the first level of support of the progressive down movement. If we landed below the level of $ 1985 USD/Ounce, it is likely to test the level of $1593 USD/Ounce (or even $ 1585 USD/Ounce). if it ends below the support level at $ 1585 USD/Ounce is possible to accelerate the downward movement. the two expected senario is depend on the news came from Euro area today will show us gold price trend.