7-11th may 2012
Gold was expected to break below 1625$ on Friday 05th may but much awaited but unexpected US job report on Friday disappointed traders, oil fell 4% to 98$ but Gold price supported from daily low and closed at 1641$.
On last 03th May European Central Bank president voiced of weak economy and insisted of further money printing even in worse economic s movement. Gold price fell instantly below 1640$. Europe worries have leading interest in buying USD as a safe haven during European session. Through out the week, cash has become king. Buying dips in Gold has faded this week. Technically bull market is still in tact but gold price from the beginning of this year has become weaker therefore long term traders and not holding gold for the long time, in the chart below gold price is trading below its 52 weeks price. People have started thinking that gold bull market has started to fade but supporters of gold think that correction in price of gold is a normal sign but gold price won't ever break its bull trend line of years. Current US job data and European jitters may hit gold up to 1800$ again. Technically gold has range of trading in between 1625-1670$ now, 1640$ price is neck line now, gold price might trade sideway in coming week tracing lower points. Traders can buy around 1620-25 level with money management tracing below 1610$. Sellers can sell contracts around 1648$ with money management closing above 1655$...Still gold price below 1662$ remains in bearish area.
Friday Job data suggest that gold has got the bottom line price now and buyers will come this week to buy at lower points to keep last week uptrend, closing price above 1640$ last Friday is the signal .
Dollar index DXY movement, French elections, European jitters will lead the gold market next week.