Current trend

Gold has been trading in a limited price range both today and yesterday.

USD is supported by news about the consent reached between Canada and the US on updating the NAFTA agreement. Earlier, Washington threatened to withdraw from the agreement, if the document will not be significantly changed. In addition, the market holds investors' interest in risk, and the volume of speculative positions on the instrument is currently not high. At the same time, USD shows ambiguous dynamic against most majors. However, the trading instrument ignored the negative statistics from the US yesterday, which confirms the general sentiment at the market.

The key event on Tuesday is the speech of Fed Chairman Jerome Powell. Investors expect to hear the comments of the official on monetary policy, as well as on the consequences of the US-PRC trade conflict.

Support and resistance

In the H4 chart the instrument is growing in the upper part of Bollinger Bands. The indicator is reversing sideways, and the price range remains unchanged, indicating the strengthening of the instrument in the framework of the intraday correction. MACD histogram is in the negative zone keeping a weak sale signal. Stochastic has entered the overbought zone and a strong sell signal can be formed during the day.

Resistance levels: 1196.53, 1200.83, 1204.27, 1210.00.

Support levels: 1191.65, 1188.64, 1184.92, 1180.76, 1177.11.

Trading tips

Short positions may be opened from the current level with target at 1180.70 and stop loss at 1198.70.

Long positions may be opened above 1198.70 with target at 1210.60 and stop loss at 1195.00.

Implementation period: 1-2 days.

Spot Gold

BuySellSpread
1221.921221.182

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1193.90
Take Profit1180.70
Stop Loss1198.70
Support levels1177.11, 1180.76, 1184.92, 1188.64, 1191.65, 1196.53, 1200.83, 1204.27, 1210.00

Alternative scenario

RecommendationsBUY STOP
Entry Point1198.75
Take Profit1210.60
Stop Loss1195.00
Support levels1177.11, 1180.76, 1184.92, 1188.64, 1191.65, 1196.53, 1200.83, 1204.27, 1210.00
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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