At the end of this month gold price went down reaching the level of $1180.15 per ounce amid the rise in the USD. The demand for the USD has grown due to the favourable statistics and expectations that the US Fed would raise interest rate and introduce monetary policy tightening in the near future.
Today, the pair XAU/USD has regained positions in advance of the release of the US macro-economic statistics. Today revised US GDP for Q1 as well as the key indices will become known.
Support and resistance
It is expected that revised GDP in the USA will amount to –0.8%, and this fact can significantly weaken the American currency. In the near future the pair XAU/USD can undergo correction to resistance levels of 1201.95 and 1214.00. In the medium-term the pair will continue to trade in the wide sideways channel of 1230.00-1180.00.
Support levels: 1180.15, 1173.65, 1168.50, 1160.20 and 1146.75.
Resistance levels: 1195.00, 1201.95, 1208.50, 1214.00, 1221.00, 1230.25 and 1235.35.
It is recommended to trade from the limits of the current channel. In the near future it is advisable to open long positions from the key support level of 1180.15 and take profit at the levels of 1201.95 and 1214.00. Pending short positions are advisable at resistance levels of 1214.00, 1221.00 and 1230.25.