Monday, June 25, 2012

Gold Price Predictions this Week - the Price of Gold will still be Depressed

The price of gold will continue to decline. Analysts predict a week gold prices will continue to go down and hard uphill. Economic data in the United States and European countries that still have not recovered to be the reason.

Policy of the Fed coupled with the release of economic data that does not encouraging the market threaten gold prices. Some of the data are manufacturing data in Philadelphia dipped to -16.6 from -5.8 previous level. Similarly, U.S. home sales in May fell to 4.55 million from 4.62 million previously.

European economic data has also not good. Such as, the European Union manufacturing data in June plunged for five months. Meanwhile, Moody 's Investors Service cut its rating of the world's top 15 banks. This raised fears Europe's fiscal condition.

Last week was a bad week for the price movement of gold. Previously, the market had hoped to ease Europe's debt crisis and the U.S. continued stimulus. All hope was dashed after the G-20 meeting did not produce a solution which could dampen further volatility crisis. To date, there has been no sentiment that could lift gold back to the level of U.S. $ 1,600 for a week. As long as gold price does not meet the level of U.S. $ 1,520 during this week the pressure drop can still be restricted.

Technically, gold prices still consolidation, tend to weaken. It was shown from the Bollinger band indicator 20 is under the middle Bollinger confirm bearish trend in gold. Moving Average is also close to 80% lower Bollinger. Stochastic weakened. There are only two indicators showed a positive signal that the Moving Average Convergence Divergence and Relative Index Streght. Therefore, gold price predictions of the week will move in the U.S. $ 1,550.23 - U.S. $ 1585.70.

Gold prices that are cheap actually allows the budget hunting action of the world's largest gold consumer. However, the economic conditions of China and India as the largest importer of gold is slowing. Automatically, the demand for gold is also reduced. Investors can not expect an increase because the two countries will not buy gold in large quantities.

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