Gold price technical analysis 29 – May, 2013 — The pair of gold/USD suffers from the resistance level at $1400 USD/Ounce of gold.
Yesterday’s trading session was not different from the past nine days. The pair traded at high point to reach the level of $1400.93 USD/Ounce, but fell to the level of $1381 USD/Ounce, which could be a new supportive level for gold price.As the stronger-than-expected data from the U.S. continued to put pressure on gold. Data released by the Conference Board that consumer confidence index rose to 76.2 from 69, and said the S & P for the past month that the index of the value of real estate increased by 10.9%.
On one hand, we have a downward pressure from strong equity markets, and low inflation expectations around the world and the good economic data from the United avail, but on the other hand, gold finds some support due to the growing demand from Asia and central banks. For this reason, it would be more logical to wait until penetrate to the outside of this narrow market. Key levels should pay attention painful it will be $1400 and 1372.50 USD/Ounce. If we infiltration beyond $1400 USD/Ounce of gold, so the Up side movement decided to take the control.
In that case, I think it is very likely that the pair back to visit the level of $1442 USD/Ounce. On the way to the top, expect to see more resistance at $1411 and 1430 USD/Ounce of gold. However, if the downward movement increased pressure and pulled prices below support at $1372.50 USD/Ounce, I think we we will test the level of $1360 USD/Ounce next. In the event that the support at $1360 USD/Ounce has been hacked, the real challenge will be waiting downward movement at the level of $1354.50 USD/Ounce, the bottom of the current consolidation zone.