This week, gold kept growing amid poor macroeconomic statistics from the US. The NY Empire State Manufacturing Index for August fell by 14.9 points (forecasted growth of 5 points). New publications raised the concerns that the Fed may delay the interest rate hike that was due in September. Furthermore, the uncertainty of the state of the Chinese economy and the Yuan remains.
The key statistics from the US are due on Wednesday, when the Consumer Price Index for July and the FOMC Minutes are coming out.
Support and resistance
Bollinger Bands on the daily chart is growing, while the price range is widening. MACD is also showing an upward movement and is giving a buy signal. Stochastic moved away slightly from the overbought zone and turned horizontally.
The indicators recommend keeping current long positions but caution to be very careful with opening the new ones.
Support levels: 1110.00 (14 August lows), 1105.50, 1101.60, 1094.50, 1080.70, 107.20 (24 July low).
Resistance levels: 1119.00 (local high), 1126.50 (13 August high), 1134.30, 1146.80, 1156.40 (middle of July highs).
Open long positions after the breakout and consolidation above the level of 1119.00 with targets at 1126.50, 1130.30 and stop-loss at 1110.00.
Short positions can be opened after the breakdown of the level of 1110.00 with the target at 1100.00 and stop-loss at 1119.00.Publication source