At the beginning of the trading week, gold is trading with a decrease in the background on safe assets demand reduction. Investors react to positive messages about the progress of trade negotiations between the US and China. News sources report that the first phase of the negotiations is almost completed. Now the parties are discussing the possibility of lifting the previously imposed duties. These arrangements will be included in the interim foreign trade agreement.
Another factor of pressure on the precious metal in favor the US dollar. The dollar index finished trading on Tuesday, rising 0.2%. Gold denominated in US currency, so it becomes more expensive for foreign investors.
Today news geopolitics will continue to have the strongest impact on trading. In economic news is worth paying attention to the publication of data on PMI non-manufacturing sector from the ISM. Experts predict the growth rate from 52.6 to 53.5 points.
On the chart the price again failed to overcome the resistance at 1515.00. Sales are now already below 1505.00, making a priority script with continuation of the medium-term reduction of quotations in the direction of the level of 1480.00.
Levels of resistance: 1515.00, 1530.00, 1540.00;
Support levels: 1500.00, 1480.00, 1475.00.
The main scenario - a slight correction in the middle of the range of 1505.00-1515.00 and the resumption of the downward movement.
The alternative scenario - a decrease in the level of 1480.00 direction from current levels.
The market is dominated by negative fundamental background. dominated bearish signals on the graph. Within days give preference to sales, which should be sought in a range 1510.00-1515.00
Gold forecast today FORTFS