Gold index could resume growth after a busy fall in the second half of last week. But as long as prices are kept below the level of $ 1,200 per troy ounce, talk about purchases somewhat premature. Nevertheless, it is possible that a breakthrough of this mark will be held in the near future. Firstly, the increase in tension in the south-east of Ukraine, and also the Middle East could lead to increased demand for safe assets. Second, support for gold could get if today published data on the index of business activity in the US service sector will be weaker than expected.
Particular attention will be paid to the employment component in the index in anticipation of Friday’s labor market report. If he is weak, it will suggest that NFP will not strong enough to convince the market the possibility of starting a rate hike at the next Fed meeting (the likelihood of which is already estimated to be zero).
Support and resistance levels
Support 1 1180,30
Support 2 1175,07
Current price: 1188,14
Resistance 1 1190,00
Resistance 2 1200,00
Gold index (XAU/USD) – buy gold (xau/usd) – Buy prices in the breakdown level at 1200.00 with a view to 1213.90. Stop-Loss = 1190,00
Warning: Profitability in the past does not mean profitability in the future. Any projections are for informational purposes and do not guarantee the results obtained.