XAU/USD: gold renews lows

November 13, 2015

Current trend

On Thursday, the price of gold fell to its 5-year lows. The Bearish trend accelerated amid macroeconomic statistics form the US than strengthened expectations of an interest rates hike on the US in December.

The number of Jobs Openings in September grew from 5.377 to 5.526 million against a forecasted fall to 5.370 million. However, the number of Initial Jobless Claims for the week remained unchanged at 276 thousands and came out worse than an anticipated fall to 270 thousands. According to forecasts of analysts, the chances of the interest rate increase in the US in December currently rose to 70%.

Support and resistance

Bollinger Bands on the daily chart is moving down while the price range is getting ready to narrow. MACD is trying to turn up forming a buy signal. Stochastic is leaving the oversold zone.

The indicators recommend considering an upward correction possibility or waiting for clearer trading signals.

Support levels: 1080.70 (local low), 1077.20, 1073.95 (local low).

Resistance levels: 1085.22 (local high), 1095.53 (9 November high), 1101.05, 1105.50, 1110.00 (5 and 6 November highs), 1115.70, 1121.11.

Trading tips

Long positions can be opened after the breakout of the level of 1088.00 with the target at 1096.00 and stop-loss at 1085.00. Validity – 1-3 days.

Short positions can be opened after the breakdown of the level of 1081.00 with the target at 1072.30 and stop-loss at 1084.00. Validity – 2-3 days.

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