XAU/USD: price of gold declines

FX:XAUUSD   Gold / U.S. Dollar
30 0 1
Current trend

Since the opening of the trading day, the prices of gold             and other precious metals are declining amid the strengthening in the US Dollar             .

The correlation between the price of gold             and the EUR/USD             pair is nearly 92%. The EUR is under strong pressure ahead of ECB interest rate decision, therefore, a decline in the price of gold             is likely to continue.
Demand for the USD, on the contrary, continues growing due to expectations of a hike in US interest rates. At present, gold             does not seem to be a profitable investment as borrowing costs of buying and storing it tend to increase.

Support and resistance

Though on the daily chart , OsMA and Stochastic recommend long positions, they are giving sell signals on the 4-hour and weekly charts.
Short positions are preferable. A growth to 1138.00 (38.2% Fibonacci correction and EMA144) seems possible if the price consolidates above the levels of 1085.00 and 1095.00.

Support levels: 1065.00, 1060.00, 1057.00.
Resistance levels: 1075.00, 1085.00, 1095.00, 1105.00, 1118.00.

Trading tips

Short positions can be opened from the level of 1060.00 with targets at 1050.00, 1010.00 and stop-loss at 1072.00.
Long positions can be opened from the level of 1076.00 with targets at 1085.00, 1095.00, 1105.00 and stop-loss at 1073.00.
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