Gold slightly strengthened against USD. The important resistance level is 1230.47 (7/8 Murrey). Overall, the downward trend continues.
USD is growing due to high interest rates and positive economic indicators. Thus, October Housing Starts indicator increased significantly by 1.5%. The overall figure, therefore, was 1.14 million, which is near the crisis levels of 2007 and is a strong sign of a sustainable economy. In addition, USD is supported by the planned meeting of the leaders of China and the United States at the G20 summit, where a solution to overcome the trade crisis may be found. According to experts, if duties continue to increase, it can significantly slow down the growth of the global economy.
Today, due to a bank holiday in the USA, there is no volatility expected in the precious metals market.
Support and resistance
Stochastic is at 68 points and does not give signals to open trading positions. The decrease is possible after the breakdown of the support level of 4/8 Murrey at 1218.75.
Resistance levels: 1230.47, 1234.38.
Support levels: 1218.75, 1210.94.
Short positions can be opened after the breakdown of the level of 1218.75 with the target at 1210.94 and stop loss 1225.00.
|Support levels||1210.94, 1218.75, 1230.47, 1234.38|
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