Current trend

Since the beginning of this year, the price of gold grew by more than $50 per Troy ounce amid falling Chinese stock market. Due to increased worries on the market, investors are switching their funds into safe-haven assets, such as gold and the Yen.

However, this week the price is falling. On COMEX, January gold futures fell by 0.1%.

As stability will be returning on the market, demand for gold will be decreasing. Further pressure on the price will be put by strengthening US Dollar amid monetary policy tightening in the US.

Support and resistance

The pair found support near the level of 1090.00 (ЕМА50 on the 4-hour chart). Further fall towards 1083.00 (ЕМА200, ЕМА144 on the 4-hour chart, 2.6% Fibonacci correction) is expected, a breakdown of which would open the way towards 1051.00 (2015 lows).

At the same time, an upward correction could continue to 1116.00 (ЕМА144 on the daily chart, upper border of an ascending channel), 1120.00 (50% correction).

On the 4-hour chart, OsMA and Stochastic signal sales and start turning to sales on the daily chart.

Support levels: 1095.00, 1090.00, 1083.00.

Resistance levels: 1103.00, 1116.00, 1120.00.

Trading tips

Short positions can be opened below the level of 1087.00 with targets at 1083.00, 1061.00, 1051.00 and stop-loss at 1091.00.

Long positions can be opened from the level of 1094.50 with targets at 1103.00, 1110.00, 1116.00 and stop-loss at 1090.00.

XAU/USD: price stabilised

XAU/USD: price stabilised

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

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