Current trend

Gold continues to trade near the lows of the end of last year. Today, the instrument could not break the strong support level of 1245.80 and began to grow.

The main decrease catalyst was Fed, which intends to raise the key rate quarterly. At the same time, the risks concerning US-China trade war involving EU and Canada make investors concentrate on the shelter assets. Economic conflict can lead to a drop in US investment volumes and demand, which will lead to a significant slowdown in the economy. In this case, Fed will be forced to be more cautious. In this scenario, gold short positions will be massively closed, and XAU can grow by 10% or more.

The traders are focused on US Personal Spending release at 14:30 (GMT+2). News on the further development of the trade conflict will affect the pair significantly.

Support and resistance

On the 4-hour chart, the downward movement is in correction. The instrument tests a strong resistance at the level of 1251.00. Bollinger bands are directed downwards, and the price range is narrowed, which reflects the changing of the current trend. MACD is in the negative zone, keeping a strong sell signal. Stochastic left the oversold area, forming a strong buy signal.

Resistance levels: 1251.04, 1255.11, 1260.13, 1264.44, 1272.10, 1277.36, 1282.87, 1289.09.

Support levels: 1235.93, 1239.84, 1244.82.

Trading tips

Long positions can be opened above the level of 1255.15 with the targets at 1264.50, 1269.00 and stop loss 1249.40 Implementation period: 2–4 days.

Short positions can be opened below the level of 1244.80 with the target at 1235.45 and stop loss 1250.80. Implementation period: 1–3 days.

Spot Gold

BuySellSpread
1232.671232.0562

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point1255.20
Take Profit1264.50, 1269.00
Stop Loss1249.40
Support levels1235.93, 1239.84, 1244.82, 1251.04, 1255.11, 1260.13, 1264.44, 1272.10, 1277.36, 1282.87, 1289.09

Alternative scenario

RecommendationsSELL STOP
Entry Point1244.75
Take Profit1235.45
Stop Loss1250.80
Support levels1235.93, 1239.84, 1244.82, 1251.04, 1255.11, 1260.13, 1264.44, 1272.10, 1277.36, 1282.87, 1289.09
XAU/USD: general analysis

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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