Gold price technical analysis 4 – June, 2013 — The pair gold / U.S. dollar recorded a rise by 1.89% on Monday, after the industrial data from U.S.A the largest economy in the world was disappointing, and that led to allay fears that the Fed could begin easing stimulus plan to be ended, soon. Data issued by the “Institute of Supply Management” showed that the manufacturing index fell to 49 in May from 50.7 in the previous months. These figures indicate that the U.S. economy is still far from full recovery. I think that the Fed will think in mitigation of monthly asset purchases worth $ 85 billion sometime this year, but the data that we get is still largely mixed.
When taking into consideration the current situation in the labor market. I think that the members of the Federal Open Market Committee might prefer to wait until they are on the belief that the economy gets strong activity. In the meantime, they will cling to the current approach to support recovery and functional improvement. In the short term, this will be supportive for gold, and for someone who gains will be limited due to the gloomy outlook for the global economy.
From a purely technical point of view, the odds tend to favor a kind of apostasy, as long as prices remain above the level of $1400 USD/Ounce of gold, but there is a strong resistance levels on the road. If the pair manages to penetrate the level of $1420 USD/ Ounce of gold, there will be more resistance at $ 1430 and 1442 USD/ounce of gold. If the downward movement control and pushed prices to below the level of $1400 USD/ ounce and from a personal point of view i expect to happend , expect support at $1386 USD/Ounce of gold by the end of the trading today, my Tip for investors to take short position during the trading today.