XAU/USD: growth is expected in the long term 10 February 2021, 10:37

XAU/USD: growth is expected in the long term

10 February 2021, 10:37

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1850.0
Take Profit	1875.0
Stop Loss	1830.0
Key Levels	1785.0, 1830.0, 1850.0, 1875.0

Alternative scenario
Recommendation	SELL STOP
Entry Point	1830.0
Take Profit	1785.0
Stop Loss	1850.0
Key Levels	1785.0, 1830.0, 1850.0, 1875.0

Current trend

Gold quotes are rising, trading at $1,842 per ounce.

For the second day in a row, the instrument is in a corrective uptrend. The initial impetus to the positive dynamics was given by a significant decline in the US dollar index, which is inversely correlated with the asset. Since Monday, the index has dropped from 91.120 to the current level of 90.300.

Yesterday, gold was supported after the publication of the results of the placement of 3-year US Treasuries, the yield on which fell sharply, amounting to 0.196% instead of 0.234% at the last auction. 10-year Treasury bonds will be placed today, and if the result is also below the yield of the previous auction of 1.164%, then gold may continue its upward trend.

Support and resistance

Quotes returned to the previously passed sideways channel, consolidating above the support line. Technical indicators remain in the buy state. Fast EMAs of the Alligator indicator are above the signal one, and the AO oscillator histogram is trading in the buy zone.

Resistance levels: 1850.0, 1875.0.

Support levels: 1830.0, 1785.0.

Trading tips

After growth or consolidation above the local resistance of 1850.0, buy positions with the target at 1875.0 are relevant. Stop loss is 1830.0. Implementation period: 3 days.

After reversal and corrective decline or consolidation below the support at 1830.0, sell positions with the target at 1785.0 will be relevant. Stop loss is 1850.0.