Gold prices stabilized at a higher level on Tuesday, as the decline in the value of the U.S. dollar helped prices to get back the gains ratio after losses last week.
The pair of gold / U.S. dollar at the rose until gold price reached $ 1619.98 USD/Ounce after being found a strong resistance at the level fo $ 1578 USD/Ounce. Statements of Fed Chairman “Ben Bernanke” was the main driver of performance of gold, where he said “we can not see the potential cost of risk excess – consider that some markets will increase the benefits of economic recovery stronger”, in reference to that it supports the continuation of the program purchase monthly assets worth $ 85 billion.
Eased his fears that the Fed will reduce the size of quantitative easing earlier than expected and increase the attractiveness of gold as a safe asset. Today, we will provided by Mr. “Bernanke” testimony “of the Financial Services Committee in the House of Representatives”, in the meantime, investors will focus on whether the decision-makers in the United States are able to solve the budget issue.
In case of failure of politicians to avoid the application of sharp cuts in expenditures on Friday, the results will be disastrous, especially for the labor market. And technical committee to consider, I think that gold prices will based Baltdeim between $ 1618 and 1604 USD/Ounce almost (or even $1598 USD/Ounce) in the near term. Husband had spent two days last week in this region.
I can see the first major resistance at $ 1625.64 USD/Ounce and I think we will have to have enough energy to overcome the resistance level at $ 1640.50 USD/Ounce.