This Thursday, on COMEX precious metals continued falling, as the US dollar is strengthening and the worries over Greece are fading.
During instability, the demand for gold and other precious metals as safe-haven assets is high. However, amid the forthcoming US interest rates hike, gold attractiveness is falling as borrowing costs are rising and their returns are declining. Thus, August gold futures fell by 0.3%.
In the medium term, gold tends to continue falling against the strengthening of the US dollar.
Support and resistance
Since the opening of the Asian session, the XAU/USD pair keeps moving down. The price broke through the support level 1149.50 and continues falling towards 1142.00 (this year low).
The downtrend may continue towards 950.00 (EMA144 on the monthly chart), 1072.00 (EMA200 on the monthly chart and the lower border on the weekly chart), 1131.80 (2014 low).
The pair growth is restricted by resistance levels 1185.25 (23.6%Fibonacci), 1195.00 (EMA144), 1207.50 (38.2% Fibonacci and EMA200 on the daily chart).
OsMA and Stochastic indicators on the daily and 4-hour charts give sell signals.
Support levels: 1142.00, 1131.80.
Resistance levels: 1165.00, 1174.50, 1180.00, 1185.25, 1195.00.
Open short positions from the current price and from 1149.50, 1155.25, 1158.00, 1160.50, 1165.00 with the targets at 1142.00 1140.00, 1132.00 and stop-loss at 1168.00.
After the breakout of 1174.50 open alternative long positions with targets at 1185.25, 1195.00.