Last week, gold appreciated considerably against the American dollar. It was mostly due to the decrease in demand for the American currency linked to Fed's decision not to raise interest rates owing to downbeat statistics for US key economic sectors. Investors hurried to invest in cheaper gold whose price had reached record lows, and a correction was predictable. The depreciation of the American currency usually triggers the growth of the commodity market. The precious metal is currently trading at about 1193.00.
Today, particular attention should be paid to February’s data on orders for durable goods in the USA. Statistics for initial and secondary jobless claims and a statement by Fed's Bullard are worth consideration on Thursday.
Support and resistance
Some US economic sectors registered a slump after a long period of growth, which affects the dollar. If tomorrow's statistics for US labour market turn out to be downbeat, gold quotes may continue rising and reach a level of $1200 per troy ounce. If the price consolidates above 1200.00, a further upward movement to the key resistance level at 1238.00 may be expected, which is confirmed by technical indicators, on the whole.
Support levels: 1177.60, 1164.20, 1147.50, 1142.15, 1133.00.
Resistance levels: 1193.00, 1207.80, 1221.70, 1238.00
Short positions are relevant to the current situation and may be opened from key support levels with profit fixing at 1238.00. In the long term, the price may grow to a recent local high at 1307.00.