Gold approaching 7-month highs – levels to watch

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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, 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.

More: Trading the Trump scandals and not improbable impeachment

Here is the daily chart

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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