At the auction on Thursday gold expected to resume motion up, amid high investor interest in risk-free assets and the weakening of the dollar.
The focus of investors are still trading relationship between the US and China. And if on Thursday the market was still present optimism regarding a possible resolution of the conflict, that on Friday all this optimism vanished after the media began to write about the lack of progress in the negotiations and the formal introduction of the US tariffs on all Chinese imports. It is reported that this decision was taken after the first day of talks the US trade representative Robert Laythayzer and Finance Minister Steven Mnuchin met with Trump to discuss the interim results of the meeting with Vice Premier Wu Yi Liu He.
China has announced a response that actually means worsening of trade relations between the two countries, against which investor interest in safe assets will continue to grow.
Another important factor of support for the yellow metal is the dynamics of the movement of the dollar index, which in the course of yesterday's trading lost in the price of more than 0.2%. Therefore, while maintaining the current situation on the market the precious metal has a very good chance of further recovery.
Apart from trade negotiations in Washington today, investors will be closely watching data on the consumer price index in the US, because it is one of the key indicators, which is still holding back the Fed from raising interest rates further.
On the chart of gold support at 1279.50 price resumed its upward movement. While the further growth of the price of keeping the level of 1287.50, but the market is so far dominated by bullish signals, so now waiting for the breakdown level of 1287.50 from the bottom-up and further development of the movement in the direction of the level of 1294.00.
Levels of resistance: 1287.50, 1294.00, 1310.00;
Support levels: 1279.50, 1270.00, 1263.50.
The main scenario - growth in the direction of 1294.00.
Alternative Scenario - consolidation below 1279.50 and decline to 1270.00.
The fundamental backdrop for gold remains positive. The graph bovine predominate signals. Within days consider buying the instrument from the levels 1284.00 and 1279.50.
Do not miss: The trading signal forex 5 to 10% profit per month
Based on materials FortFS