Gold price technical analysis 6 – March, 2013-Settled of the pair of gold / U.S. dollar at a slightly higher price yesterday, where gold formed its first rise in 5 deliberative sessions, with continuing of the caution before the economic data releases which had a high-impact, it will be announced later today.
Try the pair of gold/USD beyond the first level of resistance at $ 1587 USD/Ounce of gold, but it lost strength after a report issued by the “Institute of Supply Management” which revealed that the Non-Manufacturing index rose to 56 from 55.2. Today, we see that prices have found support around the level of $ 1570 USD/Ounce of gold and that is the bottom line for the recent consolidation area.
Although the prices were upward some way during the Asian session, I do not see any strong activity. I think that market participants will wait the “Beige Book” from the Fed and the salaries report changes of non-industrial sector from the Institute of ADP before doing more trades.
From a technical point of view, the broader directional bias remains in the down movement,with this, if the upward movement was able to take the pair od Gold/USD stability above the level of $1570 USD?ounce, it is possible to see an attempt for the upward movement in a short period. For this reason, you will watch the area between $ 1670-1587 USD/ounce and we will wait its hack.
There will be more resistance at $ 1597.77 and 1604 USD/Ounce, if the pair was able to move beyond the level of $ 1604 USD?ounce, it is possible to see the continuity of upward target level of $ 1625 USD/Ounce at least. If prices resumed downward trends of the past few months and managed to close below $ 1570 USD/Ounce, I think we could re-visit the support levels at $ 1564 and 1555 USD/Ounce of gold.