Gold price technical analysis 6 – May, 2013 — Gold prices settled at a price slightly higher than last week, but the level of $1486 USD/Ounce of gold, continues to be an obstacle in the face of the progressive movement.
This level form a strong support zone at 2011 the history repeat it self, immediately before the pair start the improvements and headed to the level of $1920 USD/Ounce of gold. The upward movement tried to penetrate the barrier of $1486 USD/Ounce on Friday, but the jobs data was surprisingly strong for the month of April, the downward movement helped to win the battle. Data issued by the Department of Labor showed that the salaries of non-farm sectors expanded by 165,000 last month, and the unemployment rate fell to 7.5% from 7.6%, if the labor brogram continue to improve so there is stability of gold price expected.
The Federal Open Market Committee announced last week that, “the Committee is ready for to increase or decrease the pace of its purchases to maintain appropriate policy settlement with the change in the outlook for the labor market and inflation.” This means that in the event of continued employment to rise and the unemployment decrease significantly, it is possible that the Bank federal slow down or stop buying bonds earlier than expected. This matter will be descending on the gold market, but we are still far from reaching the goal of the Fed at 6.5% unemployment. During the short term, I think that the demand for physical gold in Asia and lower the interest rate of the European Central Bank could be supportive for gold prices. I can say that gold price will rise today.
The pair of gold/U.S.dollar trading in a level higher than the last week, i think gold price will start the week by a rise, in the case of there is not any technical selling happened in the market. I think that the upward movement will face strong resistance at the $1532-1550 USD/Ounce area. Of course, in order to test that area, must movement upward and that is gaining enough strength to rise above the level of $1486 USD/Ounce as the first steep.
Directly above this level, there will be some resistance at $1498 and 1505 USD/Ounce. Down, eager to see support between $1455.85 and 1444 USD/Ounce of gold. If we can hack below $1444 USD/Ounce, it will be likely to support at $1430 and 1411USD/Ounce before reaching $1398 USD/Ounce.