Gold falls to its lowest level in four years with the help of investors to get out.
Gold bullion price fell about $ 29 an ounce during the last day of the week and deliberative month as investors liquidate trades upward after the dollar got support from the Bank of Japan's decision unexpected extension of the large fiscal stimulus program actually. Japan plans to increase purchases of financial assets (up to 80 trillion yen from the previous target, which was the scope of 60 trillion to 70 trillion yen), and the news that the Government Pension Investment Fund will double the allocation of local shares and foreign, have led to a decline in gold prices to below the lower 2013 at $ 1,180.21.
Although the gold month began an upward pace, the initial improvement that faded after the upward movement lost its important resistance area around 60/1252. But of course, technically it was not a surprise, because we have identified this area as a strong barrier could attract some of the serious sellers. In addition to the technical outlook negative, the lack of demand for safe-haven currencies put a certain pressure on the size of the market. In addition, the low inflation and expectations of US economic data improving steadily and shift the position of the Fed will continue to work against the value of gold.
Candle last week looks interesting because the market has finally overcome the important support, which was the bottom of the descending triangle area (in descending formation, which usually formed during the countdown style continuity of descending pattern). It is clear that the decline below the 1180 level will be a negative signal and indicates that the price of a pair of gold / US dollar will continue to decline, but it is also possible to see a rebound before moving to the bottom. Technically, when the penetration line support (or resistance) strong, it is possible that the market reacts, and re-visit before resuming the pattern. In that case, expect to see resistance at 1195.40 and 8/1180 and 5/1220. But, in case of downward movement has been able to maintain control, I think (based on measurements) that the new targets will be at 1156, 1127 and 1088.
Gold bullion price fell about $ 29 an ounce during the last day of the week and deliberative month as investors liquidate trades upward after the dollar got support from the Bank of Japan's decision unexpected extension of the large fiscal stimulus program actually. Japan plans to increase purchases of financial assets (up to 80 trillion yen from the previous target, which was the scope of 60 trillion to 70 trillion yen), and the news that the Government Pension Investment Fund will double the allocation of local shares and foreign, have led to a decline in gold prices to below the lower 2013 at $ 1,180.21.
Although the gold month began an upward pace, the initial improvement that faded after the upward movement lost its important resistance area around 60/1252. But of course, technically it was not a surprise, because we have identified this area as a strong barrier could attract some of the serious sellers. In addition to the technical outlook negative, the lack of demand for safe-haven currencies put a certain pressure on the size of the market. In addition, the low inflation and expectations of US economic data improving steadily and shift the position of the Fed will continue to work against the value of gold.
Candle last week looks interesting because the market has finally overcome the important support, which was the bottom of the descending triangle area (in descending formation, which usually formed during the countdown style continuity of descending pattern). It is clear that the decline below the 1180 level will be a negative signal and indicates that the price of a pair of gold / US dollar will continue to decline, but it is also possible to see a rebound before moving to the bottom. Technically, when the penetration line support (or resistance) strong, it is possible that the market reacts, and re-visit before resuming the pattern. In that case, expect to see resistance at 1195.40 and 8/1180 and 5/1220. But, in case of downward movement has been able to maintain control, I think (based on measurements) that the new targets will be at 1156, 1127 and 1088.
