xau/usd gold outlook may 2013
xau/usd or pure gold spot made low near 1373 and now trading with some recovery near 1380.on above daily chart we can see trend is down and trading below all short term averages.
on indicators,rsi is trending towards 30 while cci is in oversold state with bearish divergence.on upside we seen downtrend resumed after taking resistance at 1455 level which was month average.
on performance side xau/usd or pure gold spot down 18% year to date while us indices are up 13-14% in that period so clear underperformance and negative return of 32% as compared to equity markets.
for month of may,xau/usd or pure gold spot below 1455 remain sell and first downside target will be 1330 and if breaks that on closing basis then expect again sharp sell off upto 1200-1210 levels which is ultimate target for this precious metal.all major etf showing there holding and price average coming down below 5 years so bad signal for gold.
1400 is critical level on monthly closing basis below that 1200-1060 zone will open for gold as target zone.