The price of gold is falling amid strengthening in the US Dollar, which is still being supported by expectations of the Fed raising interest rates before the end of this year. In the short term, dynamics in the pair is likely to remain downward as long as a strong US Dollar makes precious metals less attractive assets for investors. At the end of this week, there are no macroeconomic factors which could influence dynamics of the trading instrument.
Support and resistance
Bollinger Bands on the 4-hour chart is directed horizontally while the price range has narrowed slightly. MACD histogram remains in the positive zone and is keeping a weak sell signal. Stochastic is about to leave the oversold zone and form a strong buy signal.
The indicators recommend long positions, but it is worth waiting for clearer trading signals.
Short positions can be opened from the level of 1263.00 with the target at 1258.30 and stop-loss at 1266.70. Validity – 1-2 days. Long positions can be opened from the level of 1266.30 with targets at 1268.60, 1269.80 and stop-loss at 1264.00. Validity – 1-2 days.