Current trend

Gold is trading within the wide sideways consolidation, as its investment attractiveness is growing due to the instability of a number of main currencies.

The instrument is a shelter asset for the traders. In April, USD significantly decreased due to the negative inflation and employment market data releases. As a result, EUR and GBP significantly strengthened, as gold price is gradually growing. Last week, it rapidly grew but did not break the strong resistance level of 1361.50. Later, it consolidated within the narrow sideways channel of 1335.00–1350.00.

At the end of the last trading week, there is no key release in the economic calendar, which can affect the situation significantly.

Support and resistance

Due to the lack of strong catalysts, the instrument can consolidate within the sideways consolidation. Afterward, the price can grow to the level of 1374.50 (last July maximum). In the long term, the price stays in the upward trend.

Resistance levels: 1357.00, 1361.40, 1366.00, 1374.50.

Support levels: 1345.85, 1335.00, 1330.50, 1325.50, 1316.15, 1313.50.

Trading tips

It is relevant to increase the volume of long positions at the current level with the targets at 1366.00, 1374.50 and stop loss 1326.50.

Spot Gold

BuySellSpread
1199.941199.1282

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point1349.13
Take Profit1366.00, 1374.50
Stop Loss1326.50
Support levels1313.50, 1316.15, 1325.50, 1330.50, 1335.00, 1345.85, 1357.00, 1361.40, 1366.00, 1374.50
XAU/USD: the demand increases

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.

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