Gold: support moved up 2013

Fundamental Analysis.

On Monday (May 8) the Federal Reserve released its Financial Stability Report, which showed that banking system stress, real estate pressure and persistent inflation are the main concerns for current financial stability, while Yellen said she would not rule out the possibility of a recession. Spot gold shocked to the upside and eventually closed up 0.2%. Looking ahead, the financial stability report released by the Federal Reserve highlights the downside pressure on the U.S. dollar is still not fully released, once the U.S. index fully back down, gold to continue to move higher momentum.

Spot gold XAUUSD four-hour chart

Technical analysis.

4-hour chart, gold continues to rally above 2000, support is now further up to 2010 near, while MAC in the zero axis near the drawdown, is expected to regain momentum up, bullish in the day above 2013, the target 2040-2060 near.

Resistance level:2040 2060

Support level:2013 2000

Trading strategy: 2013 bullish above, target 2030 2060   

Alternative strategy: 2013 bearish below, target 1990 1970