The price of gold continues to consolidate after a significant fall from April to August. For a month, the instrument moves within the narrowing lateral channel of 1190.00-1215.00.
With the exception of the oil sector, the pressure on the market remains amid which the gold price continues to fall. Additional pressure on the pair is provided by some recovery in the US currency.
This week, special attention should be paid to the Fed decisions on rates and . At the end of the week, data on the US economic growth, the labor market, and orders for durable goods will be published.
Now the instrument determines the direction of movement in the medium term. Most likely, the downward dynamics will remain in view of a significant appreciation of the dollar on expectations of the further tightening of and raising rates before the end of the year. At the same time, demand for precious metal continues to fall, which provides pressure on the price. The consolidation is likely to be replaced by a downward wave with the target at 1120.00 (the local low of the end of 2016).
Technical indicators confirm the decline: indicates the growth of the of short positions, and are pointing downwards.
Support levels: 1195.00, 1190.00, 1175.00, 1160.00, 1150.00.
Resistance levels: 1215.00, 1230.00, 1240.00, 1260.00, 1266.00, 1280.00, 1306.50.
In this situation, short positions may be opened with targets at 1150.00, 1120.00 and stop loss at 1218.00.
Entry Point 1198.45
Take Profit 1150.00, 1120.00
Stop Loss 1218.00
Key Levels 1150.00, 1160.00, 1175.00, 1190.00, 1195.00, 1215.00, 1230.00, 1240.00, 1260.00, 1266.00, 1280.00, 1306.50