Current trend

Gold price continues to fall more slowly than in late April and mid-May, but the trend stays downwards. In late May, the instrument unsuccessfully tested the key resistance level of 1306.50, after which it went down again.

Since the end of the last trading week, the pair is testing the support level of 1289.00. The main catalyst for the restoration of the downward trend was the growth in demand for the US dollar on favorable data on the employment market and key indices, which may give impetus to further tightening of monetary policy and raising the Fed rates, which confirms the forecast for further decrease of the gold price in the medium term.

This week, the US will not publish any more key statistics, so no significant volatility is expected.

Support and resistance

The price stays within the downwards channel and will continue to decline in the medium term. Technical indicators keep the signal for further fall. The MACD short positions volumes are increasing, Bollinger bands are directed downwards.

Resistance levels: 1302.00, 1304.10, 1306.50, 1312.85, 1318.50, 1330.00.

Support levels: 1289.00, 1282.00, 1280.00, 1274.30, 1265.00, 1257.10, 1240.00.

Trading tips

It is relevant to increase the volumes of short positions from the current level with the targets at 1265.00, 1257.10 (in the long term –1240.00) and stop loss 1308.10.

Spot Gold

BuySellSpread
1227.821227.2161

Scenario

TimeframeWeekly
RecommendationsSELL
Entry Point1290.67
Take Profit1265.00, 1257.10, 1240.00
Stop Loss1308.10
Support levels1240.00, 1257.10, 1265.00, 1274.30, 1280.00, 1282.00, 1289.00, 1302.00, 1304.10, 1306.50, 1312.85, 1318.50, 1330.00
XAU/USD: consolidation turns to a fall

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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