Demand for gold continues growing and has reached 2,335 tons in the first half of 2016. In April-June period, total demand increased by 15 percent compared to the 2015 second quarter. Investors are shifting their assets to gold to reduce the risk amid the lack of stability in global markets.
It should also be noted that central banks’ bond-buying programmes and strong demand for bonds among investors accelerate a fall in global bond yields. The current situation in stock markets raises concern as well, and some experts believe that stocks might soon head to a fall.
Support and resistance
RSI is near the oversold zone, suggesting the possibility of a growth in the pair.
The nearest support level is at 1330.29.
The nearest resistance level is at 1342.43.
Long positions can be opened from the level of 1334.45 with the target at 1352.00 and stop-loss at 1329.00.