Category: Gold Prices

MECCA ( Reuters ) – The retailers said that the economic difficulties caused by the Arab Spring uprisings have affected the jewelery trade in the city of Mecca , where gold sales fell by more than half compared to the same period last year .

Usually buys visitors from Arab countries during the Hajj , necklaces , rings and bracelets as gifts for their loved ones .

It was not immediately possible to obtain figures on the value of gold sales , but traders say the pilgrimage season is the most popular for dozens of stores located outside the Grand Mosque in Mecca .

Residents say up to two million pilgrims from outside the Kingdom of Saudi Arabia usually spend the first few days in the search for to buy gifts for their relatives before the start of the Hajj ceremony .

crowded restaurants and food stalls near the Grand Mosque in Mecca, but diners gold shops remain empty and boredom seems clear on the owners of these shops and trying to overcome it by browsing through magazines and the use of mobile phones.

And said Mohammed Ahams, a store manager for the costume outside the Grand Mosque in Mecca, told Reuters, “Gold sales have already been affected and say that the market has fallen by more than 50 percent compared to last Hajj season.”

He added that the Egyptian pilgrims, representing about 40 percent of sales are the main customers since a long time. He went on to say “But now, due to be affected from the Arab Spring have no surplus to spend money to buy gold.”

Gold prices continued to decline yesterday on the back of expectations that there will be some sort of agreement between Democrats and Republicans before the deadline on 17 October .

XAU/USD decline to 1282.47 . In the previous analysis , We said that the technical outlook was regressive and that the downward movement had more power than the upside movement . Technically, will keep a pair of XAU/USD on expectations downward while falling pattern line , which dates back to August at 1433.70 continue in the dam by the upward movement .

Prices are what without change of the daily time frame and the time frame for four hours. In addition, we have a descending intersection between line Tinkan – age (moving average for the ninth time – the red line) and Keygen line – age (moving average for 26 days – the Green Line).

Although the charts indicate that there will be more space to move down, the level of support at 1275 will be the region principal that must be monitored, and because the pair XAU/USD has stopped or reflected at the same price level that several times since June. If the pressure continues to move downward, and skipped the level of 1275, focused on the level of 1253, 1244 and 1236. However, in the case of income buyers and defended the level of 1275, then we will probably visit the 1291 and 1302 again today. Beyond that, there will be more resistance at 1315 and 1326.

Gold continued to move down, breaking below the level of 1316, and returned to its downward course. However, the bias remains to the downside, precious metals fall under each of the 20 – and 200 – moving averages, while the MACD is below the trigger line in negative territory.

• Support: 1291 (S1), 1277 (S2), and 1260 (S3)
• Resistance: 1316 (R1), 1343 (R2), 1368 (R3).

Gold prices fell by 2.4% during the week , but still managed to close above bottom of the Ichimoku cloud on the daily time frame .

While the focus remains on the market partial government closure , the political struggle in the U.S. Congress has increased the attractiveness of gold as a safe asset . Some investors believe that the reduction is no longer an option because the labor market conditions are still far from what he wants members of the Federal Open Market Committee to see him .

Two weeks ago, reduced the Fed officials of their growth estimates for this year and next year . Of course, the main topic is the debt ceiling talks and how to solve them . Although market participants are worried about a group of Republicans who want to use Multi debt ceiling to get concessions from President Obama , hopes high that the Speaker of the House , “John Bouhener ” unification factions in his party on a plan to re-open the federal government and raise the roof state debt .

Although a lot of lack of clarity on what drives gold prices in general to rise , the lack of upward movement is one of the things that should be monitored . From a purely technical perspective , I think that a pair of gold / U.S. dollar will face difficulty in obtaining power in any direction at this point. Key levels should be monitored will be 1345 and 1275 and that define the limits of the previous consolidation area .

Hack above the level of 1345 it is possible to give a further upward movement of the power that are divinely need to test resistance levels at 1360 , 1373.50 and 1380 , but of course they exceeded the 33 / 1326 before that . However, if the downward movement took control and pulled prices to below 1302, which is likely to see that the pair will test the next support levels at 1291 and 1275 . Daily close below 1275 is sure to increase the downward pressure . In that case, I think we will re- visit 1253 and 1244 in the end .

Gold maintained a bullish bias, just approaching of the 61.8% Fibonacci levels at 1323.00 levels again, and the top of the descending channel shown on the chart. In this meantime Stochastic entered overbought levels, based on and in spite of apostasy, will remain bearish wave is complete and start-ups 1434.00 levels.

The short-term trend (the trends that last from two weeks to two months)

Note:

If the price has achieved 20% of the target before achieving this is an entry point to cancel the signal expectations.

EUR/USD

Rose single European currency sharply against the U.S. dollar during trading yesterday came the rise after the speech Mario Draghi President of the European Central Bank, who said that the interest rate will remain 0.5% for a long time without change and will keep the central bank policy adapted to support economic activity in the region and that inflation is low and must remain at this level for months, and also stressed that the central ready to take all measures .

And the release of data that the number of jobs in the private sector have risen less expected her where he was expected 180 thousand, but issued 166 thousand this increased pressure on the dollar.

The pair opened trading yesterday 1.35233 and closed at 1.35808 level.

EUR/USD support and resistance points

R1 1.36028 S1 1.35246
R2 1.36269 S2 1.35005
R3 1.3666 S3 1.34614
Pivot Point: 1.35637

GBP/USD

GBP/USD rose amid anxiety caused by negative developments, including the U.S. budget can be solved by raising the debt ceiling in the United States during the 17th meeting this month.

Pound continued to rise against the dollar penetrative 1.62 level despite the weak data released yesterday showed that growth in the building and construction sector in the UK slowed unexpectedly.

The pair opened trading at 1.61902 and closed at 1.62288 level.

GBP/USD support and resistance points

R1 1.6247 S1 1.61797
R2 1.62678 S2 1.61589
R3 1.63015 S3 1.61253
Pivot Point: 1.62134

USD/JPY

After the release of the two indicators of investment in foreign bonds and foreign investment in Japanese stocks positive Yen continued progress against the dollar and returned to the 97 level.

The pair traded between 98.018 and 97.384 level.

USD/JPY support and resistance points

R1 97.89 S1 97.171
R2 98.112 S2 96.949
R3 98.471 S3 96.589
Pivot Point: 98.530

Gold

Recovered gold metal the session of the European on Wednesday, the lowest level in nearly two months recorded the session Asian comes this rise thanks to the decline in the U.S. currency the dollar broadly against all major currencies after data below expectations for the sector functions for triggering doubts in improved labor sector the U.S. as one of the conditions makers monetary policy at the Federal Reserve to reduce cash program.

Gold opened on the price of 1287 dollars per ounce and closed on the price of 1315 dollars per ounce.

GOLD support and resistance points

R1 1323.3 S1 1288.2
R2 1334.1 S2 1277.4
R3 1351.6 S3 1259.8
Pivot Point: 1305.7

XAU/USD

Gold bounced below level of support at 1275 and traded at the height reached 1323.84, as the light of economic data from the United States to pay investors to move from stock markets to gold

announced data from ADP Studies Institute revealed that the private sector added 166,000 jobs only in the month of September, less than expected at 180,000. Gold also got the power of expectations that Democrats and Republicans will suffer to reach an agreement on the state budget. Yesterday, the head of the U.S. House of Representatives “John Bouhener,” that President Obama, in a meeting with the leaders of Congress, refused to negotiate the reopening of the government and the arrest of the damage on the economy and resulting from the closure.

Although the orientation direction remain Compressed down , we will not ignore the fact that there is a probability that gold prices will rise and re-test the resistance level at 1318.it will be a tough challenge for the progressive movement if we got there. If the activity continues upward and skipped the level of 1345, I will focus on 1360 and 1376.15.

If the downward movement has been able to defend at the level of 1318, and prices continue to fall, expect to see some support at 1302. Short graphs indicate the probability of re-test 1291 and 1275 in the event was skipped support at 1302. Headlines about the U.S. budget negotiations will be the main driver of the performance of gold.

A sharp decline in gold prices during yesterday’s session, closing the day at $ 1,287.66 an ounce.

Breaking below the key support level at 1318 sharp began the process of selling large got more support after the announcement of the industrial activity data from the United States, which has provided more support to the world’s largest economy continues to recover. Advertised data from the Institute for Supply Management showed that the national industrial activity index rose to 56.2 from 55.7.

Market reaction to the partial government closures in the United States was muted. There is a growing conviction that the closure will not last for a long time and I think that calm comes from the fact that investors have seen this political drama before. Today, during the Asian trading session, dropped a pair of XAU/USD. to its lowest level during the 7-week low of 1277.85 before recovering to 1283.55. Since the gold found support and resistance around the level of 1275 in the past, it is likely that we will see some profit collection at that point. In that case, expect a rebound towards the area between 1302-1305 where located on the daily time frame. In case of upward movement has been able to push prices and maintain over this area, it is possible to visit the level of 1318 before retreating further.

Until prices climb above the level of 1345, I do not have any intention to take a long position. In the event of increased downward movement of the downward pressure and closed a pair of XAU/USD below the level of 1275, I believe that the next stop will be at 1353. Once landing after that level, the downward movement will be targeted levels of 1244 and 1236. Participants may wait in the market today’s press conference the European Central Bank’s data report the change in non-farm employment sectors of machinery ADP studies done before the trades.

XAU/USD started this week at a higher level on the back of signs that the decision-makers in the United States suffer to avoid the closure of government temporarily, but XAU/USD failed to break the resistance level at 1345, and dropped to 23.6 Fibonacci

Although a combination of factors supportive of gold, such as the political crisis in Italy and the Fed’s willingness to maintain the huge stimulus and worries about the U.S. government budget and debt ceiling, but the prices were suffering because of weakness in demand. As the Chinese gold consumption plays an important role in this market, the numbers are disappointing economic from China also pressuring gold prices.

According to the report issued by HSBC, the index of manufacturing activity fell to 50.2 from 51.2 and said China Logestiat Federation and that the procurement official purchasing managers’ index rose to 51.1 from 51.0. Until now, the performance of gold upward movement well in protecting the level of 1381, but they do not seem to have the strength to maintain the style as the uncertainty over the U.S. budget negotiations make traders reluctant to entering large XAU/USD technically means that the price movement will be limited so that we can get out of this region as a whole.

To the top, there will be resistance between 1345 and 1360. And alone close above this level will make me think that the upward movement will be strong enough to deal with the level of 1380. In the event that the upward force lost its power and failed to get through the first barrier, will be the level of 1318 is the key to move to the bottom. Breach of this level will indicate that the downward movement will not stop before visiting the level of 1302 again.