Gold approaching 7-month highs – levels to watch

XAU/USD, aka the price of gold, is eyeing the $1300 level and trading around $1292. The precious metal is sought after as a safe-haven asset in times of trouble. New reports about Russia’s interference in the US elections[1], worries about global growth and other factors boost the Japanese yen and also gold.

At current levels, XAU/USD is very close to the $1294 level that was a peak in early April. Beyond this barrier, we are back to the levels seen in the US elections in early November.

XAUDUSD big levels

The next level to watch is $1308, which served as support in July 2016 and also temporary resistance in November 2016. Above this, we find $1336, the swing high around the US elections.

The next levels on the topside were all levels of resistance back in the summer of 2016. $1352 was seen in early September. $1368 capped the pair in August and $1375 is already very strong resistance, holding down the metal in July.

Beyond $1375, we need to look back at highs seen in early 2014, more than three years ago, and that is $1400.

If we look down, $1278 worked in both directions in the past but isn’t that strong now. $1240 served as support in March 2017 and is already a stronger level.

$1210 was a higher low back in Apri. Another higher low is $1195. Further below we find $1142, which temporarily capped gold in December 2016. The last level is $1120, where XAU/USD bottomed out in also in December.

Here is the daily chart

Get the 5 most predictable currency pairs[2]

from Forex Crunch

from Online Forex Trading Resource
View thesource article here


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