Gold price technical analysis 8 – April, 2013 — Although the pair gold / U.S. dollar fell last week, but he bounced back to the level of $ 1540.10 USD/Ounce, which was almost a bottom of the descending channel, followed by the market since October.
We got a strong upward channel during the deliberative final day of the last week, where the numbers of the payrolls report came anticipated the non-agricultural sector, much weaker than had been expected. Data issued by the Department of Labor showed that salaries rose by 88,000 during the month of March. I think that we are supposed to examine the weekly chart at the end of each week in order to see our position in the bigger picture, to get some obvious point where is the gold price trend going.
From a technical standpoint, I think that there are two things you should pay attention to them at this point, first, the pair is trading in a large flat channel for 80 weeks ago and are almost close to the bottom of this consolidation area.
The second important thing that you should think about it -is that gold has been downward since it reached the level of 1795.75 on 5 October. Will gold prices will depend on landing and the reversal? Or you will end the downward movement finally this session? I think it’s too early to answer these questions. I’m not going to buy gold on a long-term basis until the upward movement hacked the level of $ 1626 USD/Ounce.
But I do think that it is very possible to see prices go up as long withstood the upward movement above the level of $ 1564 USD/Ounce. In that case, expect to see resistance at $1587 and 1598 and 1603.84 USD/Ounce of gold. If downward movement took control and pulled prices far below the level of $ 1564, I will monitor the 1555 and 1548 and 1540 USD/Ounce.