Current trend

The price of gold continues to consolidate after a significant fall from April to August. For a month, the instrument moves within the narrowing lateral channel of 1190.00-1215.00.

With the exception of the oil sector, the pressure on the commodities market remains amid which the gold price continues to fall. Additional pressure on the pair is provided by some recovery in the US currency.

This week, special attention should be paid to the Fed decisions on rates and monetary policy. At the end of the week, data on the US economic growth, the labor market, and orders for durable goods will be published.

Support and resistance

Now the instrument determines the direction of movement in the medium term. Most likely, the downward dynamics will remain in view of a significant appreciation of the dollar on expectations of the further tightening of monetary policy and raising rates before the end of the year. At the same time, demand for precious metal continues to fall, which provides pressure on the price. The consolidation is likely to be replaced by a downward wave with the target at 1120.00 (the local low of the end of 2016).

Technical indicators confirm the decline: MACD indicates the growth of the volume of short positions, and Bollinger Bands are pointing downwards.

Support levels: 1195.00, 1190.00, 1175.00, 1160.00, 1150.00.

Resistance levels: 1215.00, 1230.00, 1240.00, 1260.00, 1266.00, 1280.00, 1306.50.

Trading tips

In this situation, short positions may be opened with targets at 1150.00, 1120.00 and stop loss at 1218.00.

Spot Gold

BuySellSpread
1221.921221.182

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1198.45
Take Profit1150.00, 1120.00
Stop Loss1218.00
Support levels1150.00, 1160.00, 1175.00, 1190.00, 1195.00, 1215.00, 1230.00, 1240.00, 1260.00, 1266.00, 1280.00, 1306.50
XAU/USD: general review

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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