Review and dynamics
Decision of the British people to leave the EU, the inaction of the Bank of Japan and concerns of the US Fed about the state of the American and the world economies have boosted demand for gold.

Since the beginning of this year the price of gold has grown by 25% and the demand for gold continues to increase. Since the beginning of this month the price of gold is increasing steadily, and after the announcement of the results of referendum, the price has reached annual and monthly highs above $ 1350.00 per ounce.

Despite the ensuing correction, and sales at the highest level, the price of gold continues to rise.

Our opinion
On 4-hour, daily, weekly and monthly charts the indicators OsMA and Stochastic give signals to open long positions.

The rise in price is restricted by the strong resistance level of 1323.00 (Fibonacci 38.2% to the decline since October 2012). After consolidation of the price above this level, the rise in the pair XAU/USD will continue.

Fundamental factors suggest to open buy positions.

The rise of price will continue in the ascending channel on the weekly chart with the upper limit at the level of 1385.00 (highs of 2014 года).

Further targets: 1410.00 (Fibonacci 50.0%), 1435.00 (highs of 2013) and 1500.00.

Short positions on gold will be possible, if the price goes down below 1260.00 (ЕМА50 on the daily chart, ЕМА200 on the weekly chart), 1240.00 (ЕМА144 on the weekly chart).

After breaking out the level of 1218.00 (Fibonacci 23.6% and ЕМА144 on the daily chart), downtrend may resume.

However, the price of gold is likely to go further up.

Support levels: 1300, 1280.00, 1260.00, 1240.00, 1218.00 and 1200.00.

Resistance levels: 1323.00, 1360.00, 1385.00, 1400.00, 1410.00, 1435.00 and 1500.00.

Trading tips
Buy on the market. Stop-Loss: 1310.00. Targets: 1360.00, 1385.00, 1400.00, 1410.00, 1435.00 and 1500.00.
Sell Stop 1285.00. Stop-Loss: 1330.00. Targets: 1255.00, 1240.00, 1218.00 and 1200.00.

Resistance level 1323.0000
Resistance level 1323.00

In the ascending channel
In the ascending channel

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