On Monday, the price of gold slightly grew as it was supported by poor macroeconomic data from the US.
The Chicago Purchasing Managers’ Index for November fell from 56.2 to 48.7 points, against forecasted fall to 54.0 points. In addition, data on Pending Home Sales also came out worse than forecasts at 0.2%, while economists predicted a 1.0% growth.
At the same time, the pair remains under pressure amid market expectations of an interest rate increase in the US in December.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is narrowing. At the same time, the indicator has formed a signal for correctional growth. MACD is growing and giving a buy signal. Stochastic bounced off the oversold zone and growing.
The indicators recommend long positions
Support levels: 1070.00, 1064.64 (18 November low), 1060.00, 1052.58 (27 November low).
Resistance levels: 1074.45 (local high), 1080.84 (23 November high), 1087.87 (20 November high), 1095.53, 1101.05.
Open long positions after the breakout of the level of 1078.20 with targets at 1086.00, 1092.60 and stop-loss at 1074.40. Validity – 2-3 days.
Short positons can be opened after the breakdown of the level of 1066.40 (with the appropriate indicators signals) with the target at 1054.00 and stop-loss at 1071.50.