The price of gold has been falling for the second trading session in a row amid strengthening of the US currency. Demand for the USD is growing supported by uncertainty over the situation in the eurozone. A risk that the UK could leave the EU remains the key issue.
Today, data on Manufacturing PMI is due in the US. The indicator is expected to remain almost unchanged at 52.3 points. In case of a stronger result, the USD would get more support, thus, affecting the price of gold.
Support and resistance
The Bears are getting less active. The level of 1201.30 obstructs further fall in the pair. If the price breaks it down, it is likely to retest the level of 1189.80.
Support levels: 1201.30, 1189.80, 1180.50.
Resistance levels: 1217.60, 1229.50, 1239.77.
In the short term, sell positions can be opened from the level of 1201.00 with the target at 1190.00 and stop-loss at 1205.00.
Long positions can be opened from the level of 1218.00 with targets at 1229.00, 1238.00 and stop-loss at 1214.00. Moreover, pending buy orders can be placed at 1189.80.