XAU/USD: gold is getting cheaper

Current trend

The prices of gold dropped considerably during yesterday’s trading marking a new local minimum since November 14 and continuing to develop “bearish” dynamics formed on Wednesday. The instrument continues to be under pressure from optimistic tendencies in stock markets and moderate growth of USD on the optimistic fundamental background.

During today’s morning session gold is showing mixed dynamics of trading and investors are waiting for new drivers. On Friday they will focus on macroeconomic data on US PMI in November and speeches of the Fed’s representatives: James Bullard at 16:05 (GMT+2), Robert Kaplan at 16:30, and Patrick Harker at 17:15.

Support and resistance

In the D1 chart Bollinger Bands are showing flat dynamics. The price range is slightly widening from below. MACD indicator is reducing preserving a quite stable sell signal (the histogram is below the signal line). Stochastic preserves a stable downward direction.

Resistance levels: 1276.26, 1279.72, 1283.77, 1288.07.

Support levels: 1272.14, 1267.30, 1263.37, 1260.25.

Trading tips

Long positions may be opened after the breakout of the level of 1276.26 with target at 1283.77 and stop-loss at 1270.00. The period of implementation is 2-3 days.

A breakdown of the level of 1272.14 may be a signal for further sales with targets 1263.37 or 1260.25 and stop-loss at 1276.26. The period of implementation is 2-3 days.