USD appeared under pressure after the Republicans withdrew from the US Congress a bill on the cancellation of Obamacare program on Friday. Additionally the US dollar was affected by negative statistics from the USA, particularly the data on PMI Markit Manufacturing and durable goods orders.
Investors reacted to these news by selling USD which led to significant growth of gold quotes. Although formally the decision of the Congress was postponed for an indefinite period of time, experts believe that Obamacare will remain in force. In view of this gold prices grew by 0.84% and reached the monthly maximum of 1259.07.
Technical indicators show that the growth potential is preserved. Bollinger Bands® diverge confirming current trend. However, there is a possibility of downward correction to the middle Bollinger band (1247.55). MACD histogram is located in the positive zone and its volume keeps growing indicating the preservation of buyers' activity. Breaking through the level of 1260.18 will be a signal of growth continuation. If the level of 1260.18 is not broken through, the correction of the rate may start.
Support levels: 1254.65, 1246.25, 1239.13.
Resistance levels: 1260.18, 1268.51, 1278.16.