After some correction on Friday, today gold keeps growing, while the USD is falling.
Friday’s trading session on COMEX December gold futures closed 1% higher at $1155.90 per Troy ounce. Other precious metals also strengthened. The WSJ US Dollar index, however, fell by 0.3%.
As the average daily volatility in the XAU/USD pair is at 2103 points, today the pair grew by 1140 points. Considering that it is the Bank Holiday in Japan, Canada and the US, it can be assumed that the price is unlikely to strengthen higher than 1165.00 today.
Support and resistance
On Friday, the pair reached the level of 1155.00 (ЕМА144 on the daily chart and 50% Fibonacci correction).
The growth in the pair could continue to the levels of 1167.00 (ЕМА200), 1171.00 (61.8% Fibonacci), 1180.00 (ЕМА50 on the weekly chart). A breakdown of the level of 1138.00 (38.2% Fibonacci) would resume a downward trend, while a consolidation above the level of 1180.00 (ЕМА50 on the weekly chart) could reverse the medium-term trend.
The most likely, however, is that the price is going to stay within the range between 1155.00 and 1171.00 until the end of the month.
OsMA and Stochastic on the 4-hour, daily and weekly charts recommend long positions.
Support levels: 1155.00, 1138.00.
Resistance levels: 1167.00, 1171.00, 1180.00.
Long positions can be opened from current prices with the target at 1172.00 and stop-loss at 1155.00.