The XAU/USD pair continues growing amid uncertainty over the timing of an increase in US interest rates. Thus, statements concerning a forthcoming hike gave way to worries over a slowdown in global economy and comments on the need for new anti-crisis measures. One of the Fed’s officials suggested that interest rates are to remain unchanged this year due to low inflation which will fail to reach the target level of 2% despite of a rise in the labor market. Such comments, on the one hand, negatively affect the national currency and, on the other hand, provide support to the precious metal.
Support and resistance
At present, the pair is trading at the level of 1171.88 or the 3/8 Murray level. If the price manages to consolidate above this mark, it may grow to the level of 1187.50.
The nearest support level is 1156.25 or the 2/8 Murray level.
The nearest resistance level is 1187.50 or the 4/8 Murray level.
Long positions can be opened after the breakout of the level of 1173.50 with the target at 1182.50 and stop-loss at 1170.00.