Gold has seen a massive pullback since hitting almost 1,400 an ounce on March 17th, but Silver has been on the decline since topping out just below 22 back on February 24th. As the Federal Reserve makes clear that it intends to end its third quantitative easing program by December 2014, fundamentally bullish stances on Gold and Silver begin to breakdown in the near term at these current levels. If we take the argument that fundamental support only remains if we see the Fed keep ‘the punchbowl’ available, then bearish arguments begin to take hold, especially at the confluence of resistance levels at this current metal tops.
Technically Gold is turning down from resistance level of 1344.00. As we can see how significant this level has been playing in the past. As we anticipated that the 1344 is a really good opportunity for traders to trade the levels with minimum risk. The price on close of the markets is at 1333. A move of approximately 10 Dollars. We can still anticipate a further down move till the 1328 minor support level.