On Monday the price of gold grew slightly amid weakening in the US Dollar and continued gaining positions during the morning session on Tuesday.
Yesterday relatively favorable macroeconomic statistics were released in the US that, however, gave almost no support to the US Dollar. In particular, US industrial production, having fallen by 0.5% in August, increased by 0.1% in September that was in line with experts forecast. Capacity utilization rose from 75.3% to 75.4% while a growth to 75.6% was projected.
Today market participants are waiting for the publication of the Consumer Price Index, Redbook Index and NAHB Housing Market Index in the US.
Support and resistance
Bollinger Bands on the daily chart is directed down while the price range is narrowing actively. MACD is growing and keeping a buy signal. Stochastic has slowed down its growth in the middle of its range.
The indicators recommend waiting for clearer trading signals.
Support levels: 1251.00, 1241.21 (7 October low), 1234.55 (7 June low), 1221.00, 1208.20 (3 June level).
Resistance levels: 1262.01 (13 October high), 1270.00, 1282.01, 1289.57, 1300.00 (4 October level), 1306.06, 1313.02, 1317.77, 1324.65, 1331.02.
Trading tips
Long positions can be opened after the breakout and consolidation above the level of 1264.50 with targets at 1272.99, 1300.00 and stop-loss at 1259.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1256.00 with targets at 1250.00, 1245.50, 1241.40 and stop-loss at 1261.00. Validity – 2-3 days.
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