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Sunday, May 13, 2012

spot gold technical prediction may 14 2012

spot gold technical prediction may 14 2012 : Gold edged up on Monday as bargain hunters lifted prices from four-month lows, but gains could be capped by fears about a worsening debt crisis in Europe, after an inconclusive Greek election raised the risk the country could exit the euro zone and the European Union.

Gold was behaving more like risk assets this year as the turmoil in Europe sent the euro to m ulti-month l ows and investors turned to the safety of the dollar, said analysts. The U.S. dollar has also been supported by optimism that more positive labour market numbers will be seen soon.

Gold added $3.39 an ounce to $1,581.69 by 0248 GMT, having hit a low around $ 1,573 o n Friday, its weakest since early January, on fears that the debt crisis in Europe will hurt global economic growth.

"I think for as long as the crisis in Europe drags on, it's going to keep sentiment broadly in check. At the moment, gold has been painted with the risk brush. It's going to be very much a tracker of the equity markets,

Greece's president will continue talks with the country's political leaders on Monday to try to form a government after an inconclusive election left parliament divided between supporters and opponents of the 130 billion euro EU/IMF bailout.

Investors had turned to gold as a safe haven during the debt crisis last year, sending prices to an all time high of around $1,920 an ounce. But this year, gold is trading more in line as a commodity that moves in the opposite direction to the U.S. dollar.

spot gold technical prediction may 14 2012
Gold is trading at $1581 levels. The precious metal followed the global prices, and witnessed a worst week. Overseas gold prices fell mainly on account of the political uncertainties in France and Greece, which in-crease the demand for the dollar as a safe haven. Support is at 1571 level, whereas strong resistance can be seen near 1612 levels. Overall look at a range of 1-3 months at 1550-1650 levels. Heading towards our 3 months tar-get of 1550 levels.

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