Labor Day holiday in China and parts of Europe affect gold price

Gold price technical analysis 30 - May, 2013

Gold fell on Wednesday after the slowdown of purchases due to the Labor Day holiday in China and parts of Europe, as investors awaited for the decision of the Federal Reserve (Fed) on whether it will continue its program to stimulate the economy or not.

The Commission will conclude monetary policy at the Federal Reserve meeting on Wednesday and there is widespread speculation that the Council keep the current pace to buy bonds worth 85 billion dollars a month as a result of weak economic data.

The decline in the price of gold on the spot market by 1.47 percent to $ 1455 USD/Ounce of gold at May 01, 2013 09:27 NY time.

The U.S. futures landed for June delivery went up 0.49 percent to $ 1464 USD/ Ounce of gold .

Said Bernard Sin Vice President Om. K.. S. Capital “The market is down slightly due to the closure (markets) in China and most European countries and no one leading the movement of the market by the statement of the Open Market Committee and the U.S. jobs data which is very important to give us a new direction.”

The dollar fell against a basket of major currencies as investors awaited the outcome of the meeting of the Open Market Committee so it was expected that gold price will rise, but china today said its word and lead to a huge decline in Gold price, we can say that US is not the only affecting economy all over the world but we can say that it rule it, not the only controller.