Gold finished trading on Tuesday restrained the growth of 0.3%, but already this morning, the bears were able to play these positions. At the time of writing tools Show Results -0.35%.
Yesterday the price of the yellow metal rose mainly due to the decrease in pressure from the dollar, which is the index ended the day with a score of -0.35%, as well as the weak economic statistics from China, which boosted demand for safer assets.
Today, the market situation has changed somewhat, the US dollar and the world's major indices traded in the green zone, putting pressure on the yellow metal. The central theme of the day today is the FOMC meeting, which will be summed up at 19:30 GMT + 1. Yesterday US president Donald Trump tried once again to provide verbal pressure on the participants of the meeting of the FOMC, calling the Fed to lower the interest rate by 1% and to resume bond purchase program that, according to the president, would help the US economy "to fly with the speed of a rocket." But most experts agree that the regulator will maintain the level of interest rates and the basic parameters of its monetary policy unchanged.
Today, more data will be published PMI manufacturing sector from the ISM (expected to decline from 55.3 to 55.0 points) and the ADP report on changes in the number of people employed in non-agricultural sector (forecast to rise to 129 thousand. To 188 thousand.) In the US, but the market reaction to these publications is likely to be low-key, because the major trading decisions, investors will be taken after publication FOMS outcome of the meeting and the press conference controller.
Also pay attention to the fact that today in Japan, China, Germany, France and many other countries of the world the day off, so the volatility in the market before the American trading session can be quite low.
Faced with resistance at 1286.00 price of gold has once again returned to the level of 1279.50, which bears now trying to overcome. While we do not see a strong reaction on this level, so look forward to the further development of the downward trend in the direction of the levels 1275.00 and 1270.00. Count on the resumption of the corrective movement, it will be possible only after the price fixates above 1279.50.
Levels of resistance: 1285.00, 1287.50, 1294.00;
Support levels: 1275.00, 1270.00, 1265.00.
The main scenario - decline to 1275.00, 1270.00 possible.
Alternative Scenario - consolidation above 1279.50 and rising to 1287.50
Locally, gold remains under pressure, but the market situation may change dramatically after the announcement of the FOMC decision. Therefore, you can consider selling the instrument in the day from the level of 1280.00, which stands close to the publication of economic news in the United States.
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Based on materials FortFS