XAU/USD: the price may grow

Current trend

Gold continues to correct aginst the previous gain, trading at 1961.0.

The global demand for the asset is starting to recover moderately. Following China, another one of the largest importers, India, posted its report. Gold imports rose to $3.703 billion for August this year, which is comparable to import levels of 2019, when the average import volume was 2.6 billion per month, according to the country's trade ministry. Meanwhile, the volumes of metal trading on the stock exchange have stabilized and have been holding at approximately the same values ​​for almost a week. This is confirmed by the data from the Commodity Futures Trading Commission (CFTC), according to which the number of pure speculative positions on the instrument was 236.5K and completely coincided with the indicators a week earlier, which is very rare. This reflects the calmness of investors and their faith in the further strengthening of the asset.

Support and resistance

The local Triangle pattern of the continuation of the trend began to implement: the price indicated an attempt to overcome the resistance line and went higher. Technical indicators reversed towards growth. Fast EMAs on the Alligator indicator crossed the signal one upwards, and the AO oscillator histogram reached the transition level and is ready to enter the buy zone.

Resistance levels: 1970.0, 2075.0.

Support levels: 1910.0, 1860.0.

Trading tips

After the implementation of the upward pattern and growth or consolidation above the local maximum at 1970.0, buy positions with the target at 2075.0 become relevant. Stop loss is 1950.0, below the current price.

After a decline or consolidation below the pattern support line of 1910.0, sell positions with the target at 1860.0 become relevant. Stop loss is 1940.0, above the support line.

Implementation period: 7 days or more.