The price of gold consolidated near the level of $1138.00per Troy ounce after a sharp growth amid poor labor-market data from the US that came out last Friday. As market expectations of an interest-rate increase before the end of the year recede, prices of gold and other commodities continue to grow. In addition, interest for physical gold purchases increased in China and India.
On Thursday, attention needs to be paid to the FOMC Minutes, due at 9 pm (GMT +3).
After a breakout of the level of 1138.00 (38.2% Fibonacci correction) the price would continue toward the level of 1155.20 (upper border of a descending channel, ЕМА144 on the daily chart and 50% Fibonacci). After a consolidation above the level of 1155.20 the growth could continue to 1170.00 (ЕМА200 on the daily chart and 61.8% Fibonacci), while the breakout of the level of 1185.00 (ЕМА50 on the weekly chart) could reverse the downward trend.
However, more likely is a rebound from the level of 1138.00 and a return to the descending channel, while the breakdown of the level of 1118.00 would cancel an upward correction and send the pair to year lows at 1085.00 and 1072.00 (ЕМА144 on the monthly chart).
OsMA and Stochastic on the daily and 4-hour charts do not give a clear trading signal.
- Support levels: 1130.00, 11127.00, 1118.00.
- Resistance levels: 1138.00, 1155.20, 1170.00.