As discussed in the following post How a Fibonacci Ratio Showed an Important Resistance and Support Level in Gold After retracing 61.8% of the gold crash, spot gold prices have fallen back and are now trading back under the psychologically important $1400 for the first time in four weeks. This also ascertain to our fact that Should Gold be bought on Akshaya Tritiya
Charts: Bloomberg
“The market is its own worst enemy. It is lacking positive momentum, which is keeping bulls on the sidelines. The dollar is stronger. Buyers have just evaporated,” said Sterling Smith, futures specialist, commodity research, Citibank Institutional Client Group.
$ 1327 is an important support for Gold and if it breaks we can see another round of panic selling in Gold. If one tries to understand the sign which market are throwing USD has surged, Gold has dropped signals lower liquidity flow in coming future. Gold is down 18% till date one of worst performing assets in 2013.
Technically speaking there is minor support in range of $1381-$1383 breaking the same next important support comes at $1365 and below this April Sell off low of $1320. Below this lets wait for time being 🙂
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What a recovery by Gold yesterday? It went all the way to $1337 and then up to $1400 in the same day and now hovering around $1387. It is still below all important Moving Averages.