Gold price slips back down to the ‘buying zone’
Yesterday we saw the gold price get back up to the $1680 level where the last few days we’ve seen the sellers come in.
Then in the afternoon trading yesterday the gold price was pushed all the way down to the $1630-40 zone where we’ve seen buyer step in the past few days.
The reason for the sell off yesterday was the release of the Federal Reserve minutes from the March 13th meeting. The minutes were interpreted that no more money printing would be forth coming in an almost mirror image of the rhetoric from early 2010.
It will be very interesting to see how this stance can be maintained before the Fed bows to the inevitable and print yet again. The US stock market the S&P 500 should hold the key for us in knowing when switch will happen.
The S&P has essentially gone straight up this year – a sudden and violent correction in the 10-20% range would probably be enough to convince the Fed that they need to print more money.
Levels to watch going into the close tonight will be the $1643 level – this is the lowest close we’ve had this year (14th March) since January 10 of this year.
- Gold price falls back to long-term support
- Gold price falls to $1645 level – trading back below the 200 daily moving average
- Gold price trading back around $1700 – head & shoulders forming?
- Silver back trading around its 200 daily moving average – still up 24% for the year
- Gold price back over £1100
Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-slips-back-down-to-the-%e2%80%98buying-zone%e2%80%99-6547/