Gold price after reaching the resistance level of 4/8 Murray or 1340.62 could not consolidate above it, and the instrument is now trading at the level of 1332.43.
The nearest target for sellers is at 2/8 or 1328.13. The price is under pressure due to yesterday news that Donald Trump would postpone the increasing of trading fees on steel and aluminum until next week. If the Republicans cannot persuade the President, America can enter a trading war. Other countries’ leaders have reacted negatively to Trump’s idea and stated that they would take countermeasures, which would weaken the US production and decrease USD against gold as a result.
The second negative factor for the dollar is the President Advisor Gary Cohn to resign. Apparently, he could not reach a compromise with Donald Trump on the protectionism issue.
On the other hand, as Fed’s policy is tightening, it will support USD and will not let gold price to grow significantly.
Today ADP Employment Change and Trade Balance data will be released in the USA.
Support and resistance
Stochastic is на отметке 77 points and does not reflect the possibility of the correction.
Resistance levels: 1340.62, 1350.00.
Support levels: 1328.13, 1320.31.
Long positions can be opened at the level of 1328.13 with the target at 1340.62 and stop loss 1320.31.
|Support levels||1320.31, 1328.13, 1340.62, 1350.00|
The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.