Dynamics in the XAU/USD pair remains upward, as the demand for the precious metal is growing amid global economic instability. The price of gold gained more than 20% for 6 weeks and consolidated at its highs since last February.
Ahead of today’s macroeconomic releases, due in the US, the pair is trading at the level of 1235.05. Market participants will be following the publication of data on GDP for the fourth quarter of 2015, Personal Spending and Core Personal Consumption Expenditure Price Index.
Support and resistance
The price is growing within an ascending channel to its recent local highs 1257.80, 1264.00. Later on, a downward correction is likely to develop towards the lower border of the channel 1235.35, 1224.70. A breakdown of the key support levels allows the pair to continue falling to 1186.85, 1181.60. If the price remains within the channel, it would try to overcome its local highs again.
Support levels: 1224.70, 1213.85, 1207.65, 1201.50, 1198.70, 1194.00, 1186.86.
Resistance levels: 1235.05, 1242.80, 1257.80, 1264.00, 1280.75, 1295.00, 1300.00.
Pending sell orders can be opened from the levels of 1257.80, 1264.00 with targets at 1235.05, 1186.85 and stop-loss at 1270.70.