On Tuesday, gold was traded in different directions, and finished trading a slight increase. The lack of trend dynamics of the movement of the market due to the fact that now the investors are waiting for signals from the Fed about further plans to change monetary policy.
Yesterday, the main event was the performance of the economic calendar Jerome Powell at a banking conference in Boston, but the head of the Fed disappointed traders, because in his speech did not address the topic of monetary policy. Among the other members of the Fed's most interesting comments made by Patrick Harker, who stated that the reduction in rates will not be a mistake for the Fed, but the best option right now is wait and see attitude. In this case, Harker noted that when deciding on the Fed's interest rate decisions does not discuss the political pressure exerted on officials from the White House.
Today, gold is trading with a decrease. Moderate pressure on the yellow metal has the US dollar and the notice of holding a telephone conversation between the Deputy Prime Minister of China Liu He, US Trade Representative Robert Laythayzerom and US Treasury Secretary Steven Mnuchinym. But the main event today will be the speech of the Fed in the US Congress, which could shed light on the future control actions for the implementation of monetary policy, as well as the minutes of the last meeting of the FOMC. Traders expect lower interest rates at the July meeting by 25 bps and further market direction will depend on Powell confirm these expectations, or refute them.
In the graph locally initiative belongs to the sellers. Poddavlivat price gradually to the level of 1383.00. This is not the first retest of the mark, so the probability of its breakdown is very high. Vector further price movements will depend on the ability of the bears to gain a foothold below this level, or not. If successful, we are waiting for the further development of the descending wave to the level of 1360.00.
Levels of resistance: 1397.00, 1415.00, 1438.00;
Support levels: 1383.00, 1360.00, 1332.00.
The main scenario - the breakdown of support at 1383.00 and the further development of the downward movement.
The alternative scenario - a false breakdown level and growth of 1383.0 to 1415.00.
The market is dominated by locally moderately negative news background. On the chart the initiative belongs to the sellers. Preference is given to intra-day sales tool of resistance 1397.00 and 1415.00 levels.
Forecast gold rate today FORTFS