Review and evolution
After the US dollar skidded on May's weak non-farm payrolls published on Friday, gold quotes rose by 3.7%. The spot price broke a resistance level of 1240.00 (ЕМА50 on the daily chart, ЕМА144 on the H4 and weekly charts) and came close to an important resistance level of 1255.00 (ЕМА200 on the weekly chart).
OsMA and Stochastic indicators moved to buyers' side on the daily chart and are reversing for long positions on H4 and weekly charts as well.
The further growth of the XAU/USD pair is limited by a strong resistance level of 1255.00.
If this level is broken, the price will continue growing within an upward channel on the weekly chart with the upper border at 1323.00 (38.2% Fibonacci retracement to a descending wave from October 2012).
The positive evolution of gold prices is likely to continue until Fed's meeting on 15th June. However, a strong growth above 1255.00 should not be expected either. Notwithstanding NFPR disappointing statistics ( 38 000 new jobs), the US unemployment rate dropped to 4.7% in May against April's value of 5.0%, which speaks of an approach to the US full employment.
Although Fed Head Janet Yellen did not specify an exact time for US interest rate raising in her Monday's statement, she announced that the US Central Bank may gradually increase short-term interest rates, which would be a negative signal for gold prices.
A rollback below a level of 1240.00 will provoke a fall to support levels of 1218.00 (23.6% Fibonacci retracement), 1205.00 (ЕМА144), and 1195.00 (ЕМА200 on the daily chart).
A descending trend may resume after the level of 1195.00 is broken. With the price steadied above 1255.00, the risk of a further rise in gold prices increases.
Support levels: 1240.00, 1218.00, 1205.00, 1195.00
Resistance levels: 1255.00, 1280.0, 1300.00
Buy Stop 1257.00. Stop-Loss 1247.00. Targets: 1263.00, 1280.00, 1300.00
Sell Stop 1235.00. Stop-Loss 1245.00. Targets: 1218.00, 1205.00, 1195.00, 1190.00
Resistance level at 1255.00
Indicators suggest buy-trades