Yesterday the price of gold grew amid significant weakening in the US Dollar. The American currency was pressured by the decision of the Fed not to tighten its monetary policy and to keep the interest rate unchanged at the previous 0.5%. At the same time, in the Monetary Policy Statement it was noted that the regulator sees a strong case for the next rate increase and will continue monitoring economic conditions.
There will not be much important macroeconomic statistics coming out in the US until the end of the week, thus, the instrument is likely to continue its Bullish impulse. On Thursday, however, attention needs to be paid to data on Jobless Claims and Existing Home Sales in the US.
Bollinger Bands® on the daily chart is moving horizontally while the price range remains unchanged. MACD is growing and giving a quite strong buy signal. Stochastic is growing as well and approaching the border of the overbought zone.
The indicators recommend long positions.
Support levels: 1331.76 (local low), 1237.75, 1324.65, 1320.05, 1317.84 (local low), 1314.86, 1309.08, 1304.08 (1 September low), 1300.00 (24 June low).
Resistance levels: 1336.92 (local high), 1341.87, 1346.11, 1352.34 (7 September high), 1357.82 (16 August high).