Yesterday the price of gold significantly declined. The reason for the fall was growing US Dollar that strengthened after the Fed meeting at which the regulator increased interest rates by 25 basis points to 0.50%. At the same time, Fed Chair Janet Yellen pointed out that monetary policy is going to remain loose yet for some time, while the current rate increase is a matter of trust in US economy growth rates.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range is widening, however the price remains on the lower MA of the indicator. MACD continues downward movement. Stochastic bounced off the border of the oversold zone and trying to turn up.
The indicators recommend waiting for clearer trading signals.
Support levels: 1052.58 (local low), 1046.17 (3 December low), 1040.60, 1035.35.
Resistance levels: 1060.00 (local high), 1064.64, 1070.00, 1074.45, 1080.84 (9 December high), 1088.66 (4 December high), 1095.53, 1101.05.
Long positions can be opened after the breakout of the level of 1062.50 (with appropriate indicators signals) with targets at 1067.50, 1073.80 and stop-loss at 1058.00. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 1050.00 with targets at 1042.30, 1038.00 and stop-loss at 1055.00. Validity – 2-4 days.Publication source