The pair of gold/US dollar bounced back yesterday at the support level of $ 1640 USD/Ounce to form the shape of the hammer.
Pair of gold /US dollar closed yesterday at a price higher than the opening price after three consecutive days of losses, as the U.S. dollar lost ground against several major competitors. Investors seem to have scans some profits after the group said G-7: “We reaffirm that our financial and fiscal policies were and will remain directed towards achieving our local using tools locally and we will not target currency exchange rates.
On the contrary, many countries allow their currencies to fall in order to support economic growth. Yesterday, gold price movements to indicate that the participants in the market will remain sensitive to headlines issued before the meeting of G-20 this weekend.
gold price trade for short period went slightly upward, in an indication that there is a possibility of trading higher by a further decline. Often gold prices had returned to a level (support / resistance), which suffered by passed before to continue in the style, so be recoiling towards $ 1660USD/Ounce or even $ 1666 USD/Once is not surprising, but of course will be on the upside movement to penetrate through the resistance area at 6/1652 first .
in a simple words gold will be trade in a higher level after it passed the average of $ 1660 USD/Ounce of gold as a new resistance point, gold will trades in a high level.