Gold price technical analysis 30 – May, 2013 — the pair of gold / U.S. dollar reached a higher level than expected yesterday, as the weakness in the U.S. dollar and declines in major stock markets increased investor sentiment towards gold as an alternative investment.
Reports show that the demand for currency and gold templates gain more strength in Asia. However, expectations that the U.S. stimulus by the Federal Reserve Bank will soon expire, continue to put pressure on gold prices. Over the past week, the minutes of the last policy meeting of the Federal Bank revealed that some members who have the right to vote were willing to take into account reductions asset purchases over the next few meetings of the Bank.
Shows pair of gold / U.S. dollar scope had a deliberative tight range, as the market simply has no incentive to move in any direction. I think that gold price had to take the decision fast, is it going with the upward movement or it is going to stay in the same scope.
For this reason, I believe that the upward movement will test the level of $1400 USD/Ounce again. Since this resistance area has repelled upward movement over 8 consecutive sessions, the unit will close above this level will give gold price the power that you need, to push prices towards $1442 USD/Ounce. To the top, there will be obstacles on the road such as $1411 and 1430 USD/Ounce. In the event dominated by the downward movement and increased downward pressure, there will be support at $1376.30 and 1372.50 USD/ounce of gold but it is not going to take place in the market. Breaking below the support level at $1354.50 USD/Ounce will confirm that the downward movement strongly dominant. i think we will watch rise in gold price today until the beginning of New York market we will be waiting for the US data, but i think gold price will continue to rise today.