2016-06-30 12:31:20

Review and dynamics
At Comex closing session yesterday, August futures for gold rose by 0.7% up to the level of 1326.90 USD per Troy ounce. Since the opening of today’s session spot-price of gold has traded in the narrow range at the level of 1315.00.

After the announcement of the results of the UK referendum, the price of gold reached new annual and monthly highs at the level of $1358.00 per ounce, triggering a high demand for this precious metal. Concerns of the US Fed about the state of the US and world economies, as well as comments made by the Fed representative indicate that the Fed is going to adhere to soft monetary policy, which also contributes to the increase in gold price.

The price goes up on the weekly chart with the upper limit at the level of 1385.00 (highs of 2014). Upward trend is likely to continue.

Our opinion
On the daily, weekly and monthly charts the indicators OsMA and Stochastic suggest to open long positions. The indicators on 4-hour chart show signals to sell. It is likely that the price will undergo downward corrective to the level of 1300.00 (ЕМА200 the hourly chart).

Long positions will be advisable if the indicators on 4-hour chart give signals to buy.

Fundamental factors are in favor of the buyers and the rise in price of gold can continue.

The rise in price is prevented by a strong resistance level of 1323.00 (Fibonacci 38.2% to the decline since October 2012). If the price breaks down and consolidated above this level, the pair XAU/USD can continue to rise in the ascending channel on the daily and weekly charts up to 1360.00, 1410.00 (Fibonacci 50.0%), 1435.00 (lows of 2013) and 1500.00.

Downtrend will be possible if the price goes down below 1218.00 (Fibonacci 23.6%, ЕМА144 and ЕМА200 on the daily chart.

Support levels: 1300, 1280.00, 1260.00, 1240.00, 1218.00 and 1200.00.

Resistance levels: 1323.00, 1360.00, 1385.00, 1400.00, 1410.00, 1435.00 and 1500.00.

Trading tips
Buy Stop: 1330.00. Stop-Loss: 1310.00. Targets: 1360.00, 1385.00, 1400.00, 1410.00, 1435.00 and 1500.00.

Sell Stop: 1285.00. Stop-Loss: 1310.00. Targets: 1260.00, 1240.00, 1218.00 and 1200.00.

Indicators give signals to sell
Indicators give signals to sell

In the ascending channel
In the ascending channel

Resistance level of 1323.00
Resistance level of 1323.00