Gold price technical analysis 6 – June, 2013 — Gold has progressed, after falling yesterday, at the expense of the U.S. dollar, where the upward movement has achieved some power after data was the ADP report on private sector jobs below market expectations.
The Institute of Research “data processing mechanism” said that outworking businesses added 135,000 jobs during the month of May. The data was below expectations , which was at 171,000, and the data released by the Department of Labor showed that factory orders rose by only 1% after it was amended from 4.9% decline over the past month. Another announcement has stated that “the Institute of Supply Management” Non-Manufacturing index rose to 53.7 from 53.1 in April. Gold prices show a narrow deliberative range refers to the imminent strong move in any direction.
The sharp decline in equity markets and the pair of U.S. dollar / Japanese yen appear to be supportive for gold now. However, as market sentiment seat in the end expectations that, the U.S. Federal Reserve Bank could begin reducing its plan sooner than expected, I think that the participants in the market will be waiting for the official announcement of employment figures on Friday.
Witnessing today the main meetings of the major banks, I think, most of investors will be waiting for the European Central Bank and the Bank of England announced their recent decisions on financial policies. In other words, the majority of traders will be reluctant to take large positions.
Gold will watch a slight decline by the beginning of trading cause of gaining profit so the downward movement will control the market, with a resistance level $1390 USD/Ounce of gold , after this we will be waiting for any announcement which will control the market.