As we have mentioned in our article on Fundamental Analysis, today all major exchanges, including the commodities ones, are closed. So, gold trading is also closed on Friday. Yesterday's closing price of gold futures stood at 1,972.50
XAU/USD stays in the bull market, moving within the ascending channels on the daily and weekly charts. In the current situation, it is advisable to open long positions. A breakout of the local resistance level of 1,981.00 (weekly high) can serve as an entry signal to buy the instrument.
In an alternative scenario, XAU/USD will fall to the support at 1,933.00 (EMA 200 on the 4-hour chart) or 1,922.00 (EMA 50 and the lower boundary of the ascending channel on the daily chart) after breaking through the support level of 1,952.00 (EMA 200 on the 1-hour chart).
Pending buy orders can be placed near these levels. You can follow this scenario as soon as the price breaks through the local support level of 1,960.00.
At the moment, strong upward momentum prevails in the market, which is why a deeper downward correction is unlikely. Today, investors see gold as a safe-haven asset and a store of value that protects their investments against the risks. The existing negative fundamental factors create a strong ground for the future growth of the yellow metal.
Support levels: 1,952.00, 1,933.00, 1,922.00, 1,909.00, 1,900.00, 1,877.00, 1,865.00, 1,850.00, 1,832.00, 1,800.00
Resistance levels: 1,981.00, 2,000.00, 2,070.00, 2,075.00, 2,100.00
Trading recommendations
Sell Stop 1,957.00. Stop Loss 1,983.00. Take Profit 1,952.00, 1,933.00, 1,922.00, 1,909.00, 1,900.00, 1,877.00, 1,865.00, 1,850.00, 1,832.00, 1,800.00.
Buy Stop 1,983.00. Stop Loss 1,957.00. Buy Limit 1,935.00, 1,925.00, 1,910.00. Stop Loss 1,885.00. Take Profit 2,000.00, 2,070.00, 2,075.00, 2,100.00.