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.