On Tuesday, the price of gold drops on a background of recovery in global stock indices. Investors react to the positive statements of US leadership, and Japan on the possible implementation of additional measures to stimulate the economy.
Today, Donald Trump announced his intention to discuss with the Congress of measures aimed at mitigating the effects of the epidemic coronavirus. In particular, the possibility of reducing the payroll tax and a support program for those whose wages depend on the number of hours worked. This afternoon, Trump has promised to hold a press conference. Perhaps this event will be the main news of the day.
A possible application of additional economic stimulus measures announced on the eve of Prime Minister and head of the Bank of Japan. Abe said the government will work closely and coordinate with the Central Bank.
However, the global demand for protective assets remains high, so gold retains the possibility for the resumption of growth. Stimulating factor in demand for precious metals remains the dynamics of the dollar.
On the chart of gold increased uncertainty. Bulls were unable to overcome the psychologically important level of 1700.00. Just below this level was formed strong resistance area. Therefore, a higher priority is now an option with quotations decrease in the area of 1635.00 XAUUSD.
Levels of resistance: 1680.00, 1700.00, 1720.00;
Support levels: 1650.00, 1635.00, 1605.00.
The main scenario - growth and decline to 1680.00 to 1635.00 XAUUSD
Alternative scenario - reduction XAUUSD to 1635.00 from current levels.
Fundamental background - neutral. Consider selling tool on the levels 1670.00 and 1680.00
Analytics and forecast gold today FORTFS