Gold price technical analysis 9 – April, 2013 – Gold prices fell yesterday as faded initial improvement after losing the upward movement its strength resistance at $ 1585 USD/Ounce of gold.
Gold price were in the upward channel during the Asian trading session today, but I will watch the support at $ 1572 – 1570 USD/Ounce of gold. The main event of the week will be release the results of the meeting of the Federal Open Market Committee, which was held on 19 and 20 March.
It Will be announced on the record of Wednesday and which is supposed to provide some useful information on what the committee members thought about all the time. Although those salaries report issued last Friday showed that the U.S. economy added the function of 88,000 during the month of March and raising fears that the labor market was weakening more than expected, the major equity markets and the pair of U.S. dollar / Japanese yen continued to rise which could affect slightly on Gold price.
the pair of Gold/USD will contain the long term in the descending channel. I think that the hack to the level of $ 1616 USD/Ounce (the top of the rising channel) and $ 1626 USD/Ounce, is just a dream for the progressive movement now, but it is possible to see a consolidation area between $ 1585 and 1564 USD/Ounce before the next big move.
If the upward movement has been able to defend the support area at $ 1564 USD/Ounce, the recent decline in the U.S. dollar may provide some support for gold. In that case, expect to see resistance at $ 1585, 1591 and 1608 USD/Ounce. However, if the downward movement began to control and held prices down below support at $ 1564 USD/Ounce, I think that the level of support at $ 1558.34 USD/Ounce will have an important role in the value of gold. Close below this level will indicate that we are heading for returning to $ 1532 USD/Ounce.