The XAU/USD pair is trading mixed amid the forthcoming Fed meeting.
Next week, the Regulator is expected to raise US interest rates for the first time in nearly 10 years that will strengthen the American currency and affect the appeal of gold investment. However, a rate hike is still an open issue, and some analysts suggest markets might not react with a sharp growth in the USD even if a rate hike does come.
The price of gold is also under pressure from the situation on the oil market. OPEK decided to maintain production at current high levels that has deepened oversupply worries.
Support and resistance
Bollinger Bands indicator on the daily chart is directed horizontally. The price range remains unchanged. MACD is trying to turn down, while still keeping its buy signal. Stochastic is declining in the middle of its range.
It is recommended to wait for clearer trading signals.
Support levels: 1064.64, 1060.00, 1052.58, 1046.17 (3 December low).
Resistance levels: 1070.00, 1074.45, 1080.84, 1088.66 (4 December high), 1095.53, 1101.05.
Long positions can be opened after the breakout of the level of 1074.00 (with appropriate indicators signals) with targets at 1080.30, 1085.00 and stop-loss at 1071.00. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 1066.80 with targets at 1058.00, 1050.00 and stop-loss at 1070.00. Validity – 2-3 days.