Review and dynamics
Since the beginning of this year the price of gold has grown by almost 20% from the level of 1048.00 USD per ounce. The rise was caused by the fact that investors have preferred to invest to the safe-haven assets due to uncertainty in the world financial market. The rise in price, which started at the beginning of this year, is the highest in the past 30 years. Spot-price of gold has reached the highs of March at the level of 1280.00.
At the beginning of April the price has rebounded from support level of 1218.00 (Fibonacci 23.6% to the wave of decline since October 2012) and continues to go up in the channel on the weekly chart with the upper limit at the level of 1323.00 (Fibonacci 38.2%). The price has broken up important resistance level of 1257.00 (ЕМА200 on the weekly chart).
On all timeframes from 4-hour to monthly, the indicators OsMA and Stochastic recommend to open long positions.
Amid ongoing uncertainty in the global financial markets and the policies of the Central Banks aimed at continuation of the monetary policy easing and uncertainty about the plans of the US Fed of further monetary policy tightening, the price of gold continues to rise. As long as the price maintains the positions above the current support levels of 1257.00 (ЕМА200) and 1238.00 (ЕМА144 on the weekly chart), it is advisable to open long positions.
Short positions will be preferable if the price consolidates below the level of 1218.00 (Fibonacci 23.6%). In this case the nearest target will be at the level of 1180.00 (ЕМА200 on the daily chart).
Support levels: 1257.00, 1238.00 and 1218.00.
Resistance levels: 1280.00, 1300.00 and 1323.00.
Buy Stop: 1283.00. Stop-Loss: 1270.00. Targets: 1300.00, 1323.00, 1360.00 and 1385.00.
Sell Stop: 1265.00. Stop-Loss: 1275.00. Targets: 1250.00, 1238.00, 1218.00, 1210.00 and 1180.00.
The price has broken out the level of 1257.00
The price is in the upward channel