Review and dynamics
At the end of yesterday’s trading session at Comex the price of August futures for gold rose by 1.5%, up to 1358.70 USD per ounce. At today’s Asian session spot price of gold reached the new 2-year highs. At the opening of European session today, gold was traded at the level of 1370.00. Demand for gold is increasing amid uncertainty prevailing in the financial markets in connection with Brexit.
US Fed concerns about the state of the American and world economies, as well as comments by the Fed representatives indicate the tendency to a softer policy, which also provokes the increase in gold price.
The price goes up in an ascending channel on the weekly chart with the upper limit at the level of 1385.00 (highs of 2014). Upward trend in gold prices will continue.
On daily, weekly, monthly charts the indicators OsMA and Stochastic give signals for long positions. However, the indicators on the hourly chart give signals to sell. The pair XAU/USD is overbought.
It is possible short-term that the pair will undergo downward correction to the level of 1350.00 (the lower line of the ascending channel on the hourly chart), or to 1340.00, 1323.00 (Fibonacci 38.2%). Moving average lines with periods 144 and 200 are moving between these levels on the hourly chart. Buy positions will be recommended only if indicators on the hourly and 4-hour charts will give buy signals.
Generally, fundamental factors are in favor of the buyers, as the rise in gold price is likely to continue.
with the targets of 1385.00 (upper line of the ascending channel on the weekly chart), 1410.00 (Fibonacci 50.0% to the wave of decline since October 2012), 1435.00 (highs of 2013) and 1500.00. If the price goes back below the level of 1218.00 (Fibonacci 23.6%, ЕМА144 and ЕМА200 on the daily chart) downtrend may resume.
Support levels: 1350.00, 1340.00, 1323.00, 1300.00, 1280.00, 1260.00, 1240.00 and 1218.00.
Resistance levels: 1370.00, 1385.00, 1400.00, 1410.00, 1435.00 and 1500.00.
Buy Stop: 1375.00. Stop-Loss: 1360.00. Targets: 1385.00, 1400.00, 1410.00, 1435.00 and 1500.00.
Sell Stop: 1355.00. Stop-Loss: 1370.00. Targets: 1350.00, 1340.00, 1323.00, 1300.00, 1260.00, 1240.00 and 1218.00.
In the ascending channel
Indicators give sell signals