International spot gold on last Monday followed the upward oscillation from previous Friday and it surged to USD 1,545.38, but it ended up not sustained, falling to1, 540.68. Being supported by the short-term MA in daily chart, gold went up slowly in the following days. It rebounded to the high level 1,547.6 on last Tuesday and 1,558 on Wednesday. However, the rise on Wednesday did not break the key resistance 1,553.57 before closing, and it fell sharply to 1,548.82, showing possibly the downward movement. After that, it turned to a reverse trend on Thursday and Friday. The low level retreated to 1,512.85 on Thursday and it reached the lowest at 1,498 on Friday, which closed at 1,502.02.
Gold prices in last week were affected by the debt crisis in Greece and the U.S. Federal Reserve meeting on interest rate and also the weak oil price. Several incidents have dampened investors' interest on high-risk assets such as stock market, commodities and so on. Market worried that the euro zone debt crisis spread to stock market. Commodity markets tumbled and the dollar went stronger. Moody's has warned the Italian banking sector of possibly lowering the ratings of 16 Italian banks, raising concerns about the European financial system. The capital flew out of the gold market and therefore suppressed its price.
Observed from the daily chart, gold's uptrend in the long-term is still positive, with medium-term adjustment. After the price fell below major support at USD 1,511, it probably down test the lower supports 1472.60 and 1,463. It is estimated that the trend will repeat at high level this week. The overall pattern will be in downward oscillation. The volatility is between 1,526 and 1,472. Greek Parliament will vote for the Austerity plan on June 29 and 30. The result not only determines the direction of the euro, but will affect the global financial markets. Investors should pay high attention.
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