The pair of gold / U.S. dollar continued to decline and reached the lowest level since 8.25.2013.
The pair traded at low level reached $1221.75 USD/ Ounce before recovering to the level of $1234.25 USD/ Ounce during the early Asian trading session today. Gold disappoint investors who were looking for the bottom of it. Demand for gold has fallen dramatically since last week after the Fed indicated that the period of massive easing is nearing completion.
Market investors still trying to understand the recent events because they were addicted to quantitative easing, and now seemed clear that the Fed’s policy stance is minimized the quantitative easing. Although GNP numbers of the world’s largest economies have been disappointing, but the reaction of the gold market was weak.
According to the report issued by the “Bureau of Economic Analysis,” the GNP (the output of goods and services provided by workers and real estate in the United States) has grown by an annual rate of 1.8% during the first quarter of 2013. As the market trends are driven in the end reduce the probability the Fed quantitative easing program, I think that today’s jobless claims and pending home sales will be the focus of more than a habit. If economic data eased fears that the Fed could begin soon to withdraw stimulus, it is possible to see a decline.
The key level we had to monitor today according to the chart, is the level of $1218 and 1248 USD/ Ounce it is the average trading level, but the next gold trend will be depending on the US data today