In the beginning of the month, the price of gold significantly grew.
The price was supported by the weakening US Dollar and a fall of the world stock markets, which forced investors to switch their funds into the safe-haven assets, such as gold. In addition, the price was supported by the latest Fed commentaries, according to which the regulator might reconsider its plans on monetary policy tightening in the US this year.
Today attention needs to be paid to data on the Consumer Price Index from the US. Weak data might support the price of gold.
Support and resistance
The price consolidated below the key resistance level of 1264.00.
In the medium-term, a downward correction within a wide ascending channel or a consolidation is expected. After that, the growth will resume.
Support levels: 1213.85, 1207.60, 1198.70, 1194.00, 1186.85, 1181.60, 1174.05, 1167.00, 1145.05.
Resistance levels: 1224.70, 1235.05, 1242.80, 1257.80, 1264.00, 1271.00, 1290.40.
Pending buy orders can be placed from the level of 1167.00, 1145.05 with the target at 1290.40 and stop-loss at 1135.75.