Last week the price of gold showed choppy dynamics and closed at its week’s opening levels.
The price was significantly pressured by strong data form the US that came out on Friday and again raised the probability of monetary policy tightening in the US this year. At the same time, demand for gold stays high prior to the results of the G20 summit, which is intended to develop stabilisation measures for current economic conditions in the world economy.
Support and resistance
Bollinger Bands on the daily chart is slowing its growth, while the price range is narrowing. MACD is falling and giving a sell signal. Stochastic is near the middle of its range and giving no certain signal.
The indicators recommend waiting for clearer trading signals.
Support levels: 1221.79, 1211.25 (local low), 1201.72 (22 February low), 1190.69, 1181.29, 1181.29 (10 February low), 1170.00.
Resistance levels: 1232.36 (local high), 1239.75 (local high), 1253.06 (24 February high), 1263.05 (11 February high).
Long positions can be opened after the breakout and consolidation above the level of 1232.36 (with the appropriate indicators signals) with the target at 1253.00 and stop-loss at 1220.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1211.25 with the target at 1190.70 and stop-loss at 1221.00. Validity – 2-3 days.