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FxWirePro: XAU/USD intraday upside momentum strong after global stocks decline


  • The yellow metal traded higher on Monday as global shares declined while fall in average US earnings lessened expectations that Federal Reserve could raise interest rate at next meeting. 

  • The commodity after finding support at 1255 level has rebounded strongly and is approaching to test resistance level located at 1273. 

  • Any downside is expected to be limited as the support level located at 1255 is likely to hold the bears from falling further below and bring a rebound back towards higher levels.

  • To the upside, the strong resistance can be seen 1273, a break above this level would expose the commodity towards 12805 levels.

  • To the downside immediate support can be seen at 1255, a break below at this level will open the door towards 1244 levels.

    Support levels: S1-1255, S2-1244, S3-1233 

    Resistance levels: R1-1273, R2-1280, R3-1291

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