XAU/USD: gold prices are falling

Current trend

During the trading session on Friday, September, 29, gold was falling, despite of the controversial US macroeconomic August personal income and outcome data publication. The investors reacted to the statistics moderately, as they were ready for the weak data after the natural disasters in the USA.

The market participants are waiting for the further tightening of the monetary policy by US Fed, and it’s the main negative factor, which affects gold.

On Monday the traders will be focused on the Markit Manufacturing PMI and FOMC Member Kaplan Speech at 20:00 (GMT+2).

Support and resistance

On the daily chart Bollinger Bands are falling. The price range isn’t widening and restricts the perspectives of the further development of the downward trend in the short term. However, it’s better to keep current short positions before some clear signals appear.

MACD is going down, keeping a steady sell signal (the histogram is below the signal line). It’s possible to keep current “bearish” positions in the short and very short terms.

Stochastic is reaching the zero line and reversing into flat, reflection the growing possibility of the correctional growth appearance in the short term. It’s better to wait until the development of the situation.

Resistance levels: 1280.23, 1289.98, 1304.29.

Support levels: 1273.15, 1266.83, 1261.00.

Trading tips

Long positions can be opened after the rebound from the level of 1273.15 and the breakout of the level of 1280.23. Take profit is 1300.00. Stop loss is 1270.00. Implementation period: 2-3 days.

Steady breakdown of the level of 1273.15 can be a signal to open short positions with the target at 1261.00. Stop loss is 1275.15. Implementation period: 2 days.