After the Federal Reserve increased interest rates for the first time in nearly a decade, the US dollar surged on Thursday.
Yesterday, February gold futures declined by 2.5% to $1049.60, the lowest closing price since October 2009. Spot gold was falling below the level of 1048.00, the lowest since 2010.
Today, attention needs to be paid to Markit PMI statistics for December, due in the US. In case of favorable data, the American currency will continue strengthening. Otherwise, if the indicators come in below the forecast, market participants might start taking profits on USD long positions; therefore, a short-term growth in the XAU/USD pair is also possible.
The price of gold continues declining and, at present, is in the lower part of a descending channel on the weekly chart, close to year lows 1050.00.
On the daily, weekly and monthly charts, OsMA and Stochastic recommend short positions. On the 4-hour chart, the indicators have started giving buy signals.
There is a possibility of a short-term upward correction to the levels of 1065.00 (EMA50) and 1070.00 (upper border of a descending channel on the 4-hour chart).
Though the pair is oversold, it remains under pressure from fundamental factors and tends to continue declining.
- Support levels: 1050.00, 1045.00, 1040.00.
- Resistance levels: 1065.00, 1070.00, 1075.00, 1085.00, 1095.00, 1105.00, 1110.00, 1118.00.