Gold price technical analysis 31 – May, 2013 — The pair of gold / U.S. dollar finally hacked consolidation area that we were monitor days ago, as the U.S. dollar fell broadly after the GNP data for the first quarter, and pending home sales and jobless claims, which did not correspond with expectations.
Data issued by the Department of Commerce show that the world’s largest economy grew at an annual rate of 2.4% during the first quarter. down from an initial estimate of 2.5%. Separately, the Department of Labor issued a report that the number of American citizens who have applied for unemployment benefits for the first time increased by 10000 to 354000. According to figures from the National Association of Realtors, the pending home sales index rose by only 0.3% during the month of April, after increasing by 1.5% during the month of March.
The pair of gold / U.S. dollar at its highest point reached the level of $ 1418 USD/Ounce of gold, as the economic data from the United States kind of fragiel. Fears from the Fed Bank could reduce the purchase program of its own assets. As I mentioned yesterday, the key of the upward continuity was to hack the level of $1400 USD/Ounce of gold which reserve price for a period of 10 days and now we are deliberating over this barrier. We had a new supportive level which is the average od $ 1400 USD/Ounce, and the up resistance level is $1430 USD/Ounce of gold.
We had an imaginary resistance level today which is $1410 USD/Ounce of gold. If gold price broke down it so we are heading to $1400 USD/Ounce of gold, but the same imaginary line is $1420 USD/Ounce of gold a personal wish for gold price to pass this level today but i think it is not going to happend today.