Current trend

The XAU/USD pair has again approached 2750.0. The precious metal is supported by increased demand for both the physical asset and contracts based on it.

Gold prices continue to rise amid the start of a global cycle of monetary easing by leading central banks, given the falling value of one of the asset's key competitors, bonds. Despite the local increase in the yield of debt securities caused by speculative factors, globally it is declining: for example, the rate on 10-year bonds has fallen from the last peak of 4.667% at the beginning of summer to the current 4.241%.

Another factor determining the dynamics of the instrument is the upcoming presidential elections in the United States: uncertainty about their results leads to investors moving away from possible volatility. According to experts, a victory for Republican Donald Trump could support oil prices, which would have a negative impact on gold, and if Kamala Harris, who advocates a sharp reduction in inflation, takes the presidential seat, the XAU/USD pair will strengthen.

The high demand for gold is also confirmed by leading commodity exchanges. According to a report from the US Commodity Futures Trading Commission (CFTC), the number of net speculative positions in the precious metal increased to 286.4 thousand last week from 278.2 thousand. Similar results are also recorded on the Chicago Mercantile Exchange (CME Group Inc.), where gold is traded consistently at more than 300.0 thousand contracts per day, and the option position has exceeded 80.0 thousand contracts for several days in a row, which is much higher than the average for the asset at 40.0 thousand.

Support and resistance

On the daily chart, the price is rising, holding above the resistance line of the long-term ascending channel with boundaries of 2600.0–2400.0.

Technical indicators remain in a state of stable buy signal, which is again strengthened after the end of the local correction. Fast EMAs on the Alligator indicator are held above the signal line, and the AO histogram is forming new correction bars, being above the transition level.

Support levels: 2717.0, 2606.0.

Resistance levels: 2770.0, 2915.0.

Trading tips

If the asset continues to grow, as well as the price consolidates above the resistance level of 2770.0, long positions with a target of 2915.0 will be relevant. Stop-loss — 2750.0. Implementation time: 7 days and more.

If the asset continues declining and the price consolidates below 2717.0, short positions can be opened with the target at 2606.0. Stop-loss — 2750.0.