Current trend

On Friday, the price of gold was volatile. During the first half of the day, the XAU/USD pair grew and reached the level of 1120.80, but after a strong data on Industrial Production came out in the US, demand for gold fell. According to the publication, Industrial Production for the last month grew by 0.6%, while experts expected a growth of 0.3%. Additional pressure on gold came from rising yields on the 10 years US government bonds.

Today, the NY Empire State Manufacturing Index and the NAHB Housing Market Index are due in the US.

Support and resistance

Support levels: 1111.50 (yesterday low), 1105.00 (local high), 1098.40 (the middle MA of Bollinger Bands), 1077.20 (24 July low).

Resistance levels: 1120.80 (yesterday high), 1126.50 (13 August high), 1130.00 (psychologically important level).

Trading tips

Open short positions below the level of 1111.00 with targets at 1105.00, 1100.00 and stop-loss at 1113.00. 

XAU/USD: review and forecast

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