Gold price technical analysis 28 – May, 2013 — Gold prices rose a little bit on Monday, as concerns related to fluctuations in global equity and the recent strength in the Japanese yen has increased the attractiveness of gold.
However, it appears that the upward movement are having difficulty in overcoming the first barrier at the level of $1400 USD/Ounce of gold, it is the area that formed a cover for the price of gold during the last eight deliberative sessions, as a result, we continue to see vendors entering and increasing the pressure every time you have a buying movement trot to penetrate outward. Of course, that the price movement of yesterday was not a big surprise, as the markets of the United States and Britain were closed due to public holidays.
On one hand, we have growing expectations about the easing of quantitative easing, while on the other hand we have a low gold price points that, it will attract the buyers. Although recent reports show that the central banks of the developing countries continue to buy gold as a way to strengthen and diversify their assets, but the penetration to the level of $ 1532 USD/Ounce, which repel progress movement of the downward channel for a period of 80 weeks, was an event big enough technically.
Gold price will remain under the average of $1400 USD/Ounce if we did not find any support from the US market today.