Gold is no exception, having fallen more than $45 per ounce,
which brings to a close three weeks of gains. In the short-term gold traders
may just as well look at what USDJPY is doing to get a grip on what gold’s next
move may be. But at some stage will it be worth fading the decline in gold?
From a fundamental perspective gold could be supported as we
approach the $1,400 level. There could be some buying pressure from India next
week. The festival Akshaya Trittya on May 13th, can lead to a spike in gold
sales, added to that demand from Indian weddings could last through to July.
Support zones that may attract some buying interest include:
$1,430, $1,413 - the 50% retracement of the recovery rally since mid-April,
then $1,395.
Resistance zones: $1,466, then $1,475 - recent highs.
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