The South African Standard Bank issued its analysis for the performance of gold prices in the commodity market for May 6th.
Gold price didn’t move vigorously today despite the weaker dollar movement against the Euro as expected. The nonfarm payrolls are what investors wait to see first before deciding.
As for gold movement for the day, a high negative correlation is observed with S&P index. If the S&P index closed lower than 1,604.17 support line, gold price might be traded higher with $1,425/ounce mark a relatively strong resistance.
As the Indian rupee lose value, it is expected to have the Indian government might take further actions to curb gold imports. Anyhow, these or further measures shouldn’t show short-term impact on the price of gold.
Gold physical buying in Asian markets is easing up. The Standard Bank Physical Gold Flow Index shows the demand retreating to a level slightly higher than 2009.
Gold price current technical support is at $1,388 then at $1,375 while gold technical resistance is currently at $1,416 then at $1,429.