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12 June 2017

XAU/USD: general review

By Kristina Leonova: Chief Analyst in the Investment Research Department

XAU/USD: general review
During Friday trading the rate of XAU/USD dropped to the level of 1264.00 showing the third day of decreasing in a row. The sales of gold are carried out in view of anoter FOMC meeting schedulled for Wednesday. The majority of forecasts indicate possible increase of the interest rate, that is why the investors leave gold for other assets.
The price of the precious metal was also influenced by certain release of geopolitical tension. A hearing in the Investigative Committee of the US Senate at which the former FBI head made a statement, did not lead to direct accusations of the current head of the White House, and the talks about the upcoming impeachment of Donald Trump ceased.
A central event of the current week will be the meeting of the Open Markets Committee. According to Bloomberg, 94.8% of market participants expect the interest rate to be increased. The most interesting twist will be the tone of the follow-up statement. If FOMC hints that this increase of the interest rate won't be the last in the current year, one may expect further strengthening of USD and decrease of gold prices.
On the H4 chart XAU/USD continues to correct from the level of 1296.00 consolidating on the level of 1264.00. MACD indicator is above the signal line with its volumes growing. Stochastic lines are directed upwards and are moving away from the overbought zone. The signals of the indicators do not confirm each other.
Support levels: 1264.00, 1260.80, 1255.00.
Resistance levels: 1270.00, 1276.80, 1385.00.

This website/communication is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. It has been prepared by Liteforex (Europe) Ltd (ex. Mayzus Investment Company Ltd) without taking into account any particular person's objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision. Past performance is not indicative of future performance. The future value of your investment may rise and fall with the changes in the market. 
About the author
Kristina Leonova
Kristina Leonova
Chief Analyst in the Investment Research Department

Kristina Leonova is an up and coming market specialist - currently in the process of obtaining The Chartered Financial Analyst Degree in CFA Institute.

She began her career at Liteforex (ex. Mayzus) at only 20 years old, holding the position of the Assistant of the Chief Financial Officer.

She has since become invaluable to the Company, holding the position of Chief Analyst in the Investment Research Department, and now is also responsible for our world renowned market reviews.

She has a keen eye and a good gut instinct when it comes to analyzing the markets, always staying at the top of her game, with her work often being published on other websites and news vendors.

Mayzus is excited to welcome her as our new, top financial analyst.

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