Gold finished the last trading week almost its opening level, but locally maintains the tendency to decrease.
Friday main pressure exerted on yellow metal in the stock markets situation where global indices traded in the green zone, indicating an increased interest investors in risk assets. In the United States kicked off the corporate reporting season, which has strongly supported the US stock market. Reports largest banks JPMorgan Chase and Wells Fargo came out better than market expectations, prompting the growth of the major indexes from 0.5% to 1%. Gold is one of defense assets, so it is always under pressure at high interest of investors in risky assets.
Supporting quotes gold on Friday gave the US dollar, whose index finished trading in the red zone, but it was not enough to turn the downward price movement.
Today, gold is still trading in the red zone. Pressure on prices has the situation in the stock market, which is stored the increased interest of investors to risk. Markets are positive about new comments from the White House on the progress of trade negotiations between the US and China. On the eve of Steven Mnuchin he said that negotiations are continuing very successfully and are approaching the final stage.
At the same time, the market there is news that locally could support gold. First, investors are increasingly concerned about the deteriorating trade relations between the US and the EU. On the eve of the media reported that the European Union is preparing a draft introduction of higher tariffs on US products in response to subsidies by the United States company Boeing. The US, for its part, is called the response to the EU subsidies to Airbus.
Secondly, the impact on financial markets could have a new criticism of President Trump address Fed. On Sunday, Trump wrote a new tweet in which he accused the Fed in a weak economic growth and stock exchanges. media reported that Trump wants to run for leadership positions in the Fed candidates who support the president's opinion on the need to implement a loose monetary policy, which may affect the future of the financial regulator.
On the chart of gold continues to evolve bearish wave, which is now testing the strength of the lower support border area formed between the levels of 1287.50-1294.00. If buyers are not able to keep this level and the probability of such a development is very high, the next target for price movements will be the levels 1283.50 and 1276.50.
Levels of resistance: 1294.20, 1310.00, 1317.00;
Support levels: 1287.50, 1283.50, 1276.50.
The main scenario - reduction of quotations of gold to 1283.50 and correction to 1294.00.
Alternative - the breakdown of support at 1283.50 and falling prices for zolotok 1276.50.
Formed on the fundamental backdrop continues to support the market sellers. In the graph we get more and more signals in support of the script with the further development of downward movement, so intra-day Priority is given to sales that are worth looking for near the level of 1294.20.
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Based on materials FortFS