2012-07-10 12:30:00
1. Current trend of gold
After the decline on Friday, the price for gold has slightly increased on Monday, due to the purchases of gold. Movement in the “yellow metal” was relatively slow in the range of 1577.00 - 1592.00; however, gold has prospects for the growth in the future.
2. Important levels (Resistance and Support)
The key resistance levels are: 1593.00, 1603.00 and 1620.00. Support levels are: 1577.00, 1566.00 and 1550.00.
3. Best entry/exit points
In the short-term, the most likely scenario is downward trend. In this case, the best entry points will be 1576.50, with protective stop at 1587.00. In the medium-term, gold will have a chance to grow. In such case, the best entry point will be at the level of 1551.00, with stop loss order at the level of 1521.00.
4. Supporting facts
Currently, gold prospects depend on the US Federal Reserve, which has to decide whether additional measures to stimulate national economy will be introduced, or conditions will remain unchanged. Negative US statistics increases hopes of the market participants. The fact that unemployment rate has not changed, increases chances for launching QE3 program (quantitative easing policy program of the US FR). Another important factor, that helps maintain price for gold, is European debt crisis and acceleration of inflation in many countries.
After the decline on Friday, the price for gold has slightly increased on Monday, due to the purchases of gold. Movement in the “yellow metal” was relatively slow in the range of 1577.00 - 1592.00; however, gold has prospects for the growth in the future.
2. Important levels (Resistance and Support)
The key resistance levels are: 1593.00, 1603.00 and 1620.00. Support levels are: 1577.00, 1566.00 and 1550.00.
3. Best entry/exit points
In the short-term, the most likely scenario is downward trend. In this case, the best entry points will be 1576.50, with protective stop at 1587.00. In the medium-term, gold will have a chance to grow. In such case, the best entry point will be at the level of 1551.00, with stop loss order at the level of 1521.00.
4. Supporting facts
Currently, gold prospects depend on the US Federal Reserve, which has to decide whether additional measures to stimulate national economy will be introduced, or conditions will remain unchanged. Negative US statistics increases hopes of the market participants. The fact that unemployment rate has not changed, increases chances for launching QE3 program (quantitative easing policy program of the US FR). Another important factor, that helps maintain price for gold, is European debt crisis and acceleration of inflation in many countries.