19 July Friday View

Gold had some gains yesterday and today as well but still within the range and high it tested previously of 31325 (USD 1299.16)

Technically, in Daily Chart, it is above the 23.6 % retracement level at 30785 (USD 1180.46), from 38302 (USD 1588.52) to 28463 (USD 1180.46) ; in H4 Chart, it has now broken the 150 SMA and trading slightly above of it and the upside trend line is still intact ; in H1 Chart, there is a development of an uptrend  trend line support but the price is trading within a range of 31325 and 30590 (USD 1268.68).

Fundamentally, after Fed Chairman Mr. Ben Bernanke's testimony on Monetary Policy before The Congress, looking at the improving U.S. economic data, yesterday the Unemployment Claims came out to be better than expected so has  Philly Fed Manufacturing Index, the QE3 is expected to be started to be eased from as early as September of 2013 and completely halted by the mid of 2014, Gold is under pressure supported by continued liquidation by speculators, the outflow of holdings of the world's largest gold-backed ETF SPDR Gold Trust, which in addition fell 1.5 tonnes to 937.57 tonnes on Wednesday. The fund has seen outflows of around 370 tonnes or about USD 17 Billion at current prices so far this year.

Conclusively, it's time of indecision. So, we are just waiting to see how things develop in coming days.

Stay Safe :)