XAU/USD: quotes dropped below 1800.00
Current trend
Gold prices are slightly correcting during the morning trading session, consolidating near 1790.00. The day before, XAU/USD showed a moderate decline amid a worsening epidemiological situation in Europe, where the authorities are forced to return quarantine measures due to the rapid spread of the new Omicron strain. Such a negative background is usually a catalyst for the uptrend of metal quotations, as investors get rid of risky assets in favor of "safe" gold, but now the situation has changed on the commodity markets, as well as on stock exchanges in the US, Europe and Asia.
Pressure on the trading instrument is also exerted by the prospect of a further increase in interest rates by the world's leading regulators. In December, the Bank of England unexpectedly raised interest rates, while the European Central Bank (ECB) and the US Federal Reserve accelerated the pace of phasing out quantitative easing (QE) programs. The People's Bank of China, in turn, lowered the rate by only five basis points, indicating its fundamental disagreement with the existing trends.
Support and resistance
Bollinger Bands in D1 chart show insignificant growth. The price range is narrowing, pointing at the multidirectional nature of trading in the short/ultra-short term. MACD indicator is growing preserving a weak buy signal (located above the signal line). Stochastic, having rebounded from the level of "80", reversed into a downward plane, signaling in favor of the development of a corrective decline in the nearest future. Development of "bearish" trend is likely in the short and/or ultra-short term.
Resistance levels: 1800.00, 1812.22, 1822.10, 1832.58.
Support levels: 1790.00, 1778.32, 1760.74, 1752.87.
Gold prices are slightly correcting during the morning trading session, consolidating near 1790.00. The day before, XAU/USD showed a moderate decline amid a worsening epidemiological situation in Europe, where the authorities are forced to return quarantine measures due to the rapid spread of the new Omicron strain. Such a negative background is usually a catalyst for the uptrend of metal quotations, as investors get rid of risky assets in favor of "safe" gold, but now the situation has changed on the commodity markets, as well as on stock exchanges in the US, Europe and Asia.
Pressure on the trading instrument is also exerted by the prospect of a further increase in interest rates by the world's leading regulators. In December, the Bank of England unexpectedly raised interest rates, while the European Central Bank (ECB) and the US Federal Reserve accelerated the pace of phasing out quantitative easing (QE) programs. The People's Bank of China, in turn, lowered the rate by only five basis points, indicating its fundamental disagreement with the existing trends.
Support and resistance
Bollinger Bands in D1 chart show insignificant growth. The price range is narrowing, pointing at the multidirectional nature of trading in the short/ultra-short term. MACD indicator is growing preserving a weak buy signal (located above the signal line). Stochastic, having rebounded from the level of "80", reversed into a downward plane, signaling in favor of the development of a corrective decline in the nearest future. Development of "bearish" trend is likely in the short and/or ultra-short term.
Resistance levels: 1800.00, 1812.22, 1822.10, 1832.58.
Support levels: 1790.00, 1778.32, 1760.74, 1752.87.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.