Current trend

Gold remains under pressure after the agreement between Greece and its creditors was reached and worries of Greece leaving the eurozone faded. At the same time, it brings back an importance of interest rates hike in the US in 2015 that should strengthen the USD. At present, government bonds yields are growing, an interest in currency save-havens is high, while precious metals attractiveness is falling as borrowing costs are rising and their returns are declining.

Markets are waiting for the Fed Chair Janet Yellen speech, due on Wednesday and Thursday at 5 pm (GMT +3). If she approves an interest rate increase, the USD is going to strengthen. Retail Sales data is due in the US today at 3:30 pm (GMT +3), which may add to the volatility in the XAU/USD pair.

Support and resistance

The price is moving along the downward channel towards its bottom border and year low at 1143.00.

On the weekly chart, the aim for the pair is 1072.00 (lower border of the downward channel).

The pair growth is restricted by resistance levels at 1149.50 (0% Fibonacci), 1185.25 (23.6% Fibonacci), 1198.00 (EMA144), 1207.50 (38.2% Fibonacci, EMA200 on the daily chart).

Good entry points are 1158.00, 1160.50, 1165.00, 1169.30, 1172.00, 1174.50.

OsMA and Stochastic on the 4-hour and daily charts give sell signals.

Support levels: 1149.50, 1149.00.

Resistance levels: 1165.001174.50, 1178.00, 1180.00, 1185.25, 1198.00.

Trading tips

Open short positions from the current levels and from 1158.00, 1165.00, 1169.00 with targets at 1149.50, 1148.00, 1143.00 and stop-loss at 1175.00.

Long positions can be opened after the breakout of the level of 1178.00 and with appropriate indicators signals on the 4-hour and daily charts, with targets at 1185.25, 1198.00.

XAU/USD: precious metals are falling

XAU/USD: precious metals are falling

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

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