Gold finished trading on Wednesday strong enough lower on stronger dollar and lower demand for protective assets.
The US dollar on the eve of renewed three-week high trading after the publication of very good data on new home sales and optimistic statements by Fed officials, who do not see the need for further reduction in interest rates.
Negative impact on gold have news related to international trade. Investors positively evaluated the reports of the signing of the United States and Japan, the interim agreement to reduce tariffs on agricultural products and manufactured goods. As well, Donald Trump said that the trade agreement between the US and China could be signed earlier than expected. But many experts believed that Trump made the announcement to divert attention from domestic problems in the US.
Today, gold shows a slight corrective gains on the background of the local pressure reduction from the dollar. But the potential for further development of the recoil movement remains limited. Reported earlier events significantly reduced investor interest in defensive assets.
Today, the focus of the market will be in the final evaluation data of the US GDP in the 2nd quarter, a report on pending sales in the housing market, as well as ECB President Mario Draghi and Bank of England head Mark Carney said.
On the chart of gold prices celebrate an unsuccessful attempt to gain a foothold above the level of 1523.00, which greatly reduces the likelihood of growth of quotations in the area of 1555.00 in the near future. The priority right now is the further development of the script outset in a range 1485.00-1523.00.
Levels of resistance: 1515.00, 1527.00, 1555.00;
Support levels: 1500.00, 1488.00, 1478.00.
The main scenario - a correction in the area 1515.00 and the resumption of the downward movement.
Alternative - the breakdown of the intraday resistance at 1515.00 and rising to 1527.00.
Fundamental background is sharply changed from positive to negative. In the graph locally prevail bearish signals. Intra-day considering sales from the level of 1515.00
Gold GOLD forecast for today FORTFS