On Monday morning, the price of gold was growing, but later on it declined back to Friday’s levels. The price went up as recent news from France raised demand for safe-haven assets.
Nevertheless, the price of gold is still under pressure from expectations that the Fed may raise US interest rates at its December meeting. Moreover, Consumer Price Index for October, due today, may fuel these expectations. Thus, a more or less strong upward correction in the XAU/USD pair is unlikely to start in the short term.
Support and resistance
Bollinger Bands indicator on the daily chart continues declining, while the price range is narrowing down. MACD is turning up and forming a buy signal. Stochastic has left the oversold zone and continues growing.
It is recommended to wait for clearer trading signals.
Support levels: 1080.70, 1077.20, 1073.95 (12 November low).
Resistance levels: 1085.22, 1090.00, 1095.53, 1097.88 (16 November high), 1102.81, 1110.00, 1115.70.
Long positions can be opened when the price turns up at 1080.70 and breaks out the level of 1085.30 (with appropriate indicators signals) with targets at 1095.50, 1097.90 and stop-loss at 1080.00.
Short positions can be opened after the breakdown of the level of 1075.00 with the target at 1065.00 and stop-loss at 1080.00.