On Wednesday, gold continues to move higher amid increasing concerns about the trade negotiations the US and China.
On Tuesday, the gold price rose by more than 1% due to the weakening of the pressure from the dollar (-0.15% dollar index) and Trump claims that trade talks between the US and China can be continued after 2020. Later, in an interview with CNBC, US Commerce Secretary Wilbur Ross confirmed "serious" allegations of Donald Trump. He pointed out that Trump is not lack of time, because it has a good chance of re-election as president. Therefore, the White House will be a disgrace to achieve a good agreement, not to play "political games."
In addition, the US House of Representatives approved a bill to support the Uighurs in China. many Chinese officials will be under sanctions. This solution can slow down the process of trade negotiations.
Today, in addition to the geopolitical news, investors will be watching closely the publication of statistical data from the US. It is expected to publish a monthly report on ADP non-farm payrolls and the non-manufacturing sector PMI from ISM.
In the graph locally rising trend prevails. The price has broken and entrenched above $ 1475.00. The next target for buyers is the area of 1485.00 and 1490.00.
Levels of resistance: 1485.00, 1490.00, 1505.00;
Support levels: 1475.00, 1470.00, 1460.00.
The main scenario - growth to 1485.00-1490.00.
Alternative - the breakdown of support at 1475.00 and decline to 1470.00.
Fundamental background - positive. Within days we consider buying the level of 1475.00.
Forecast gold prices FORTFS