Gold Wednesday traded in the green zone amid falling Asian indices. South Korean Kospi dropped to 3%, Japanese Topix lost 1,2%, Nikkei Stock Average dipped 2.3% (down to a minimum from December 2018 years), Australian S & P / ASX 200 lost 3.6%, Hong Kong Hang Seng It lost 0.6% and the Chinese Shanghai Composite dropped to 0.2%.
Market is down on concerns relating to prospects for the global economy in terms of the epidemic coronavirus. Many investors are not convinced that global measures of fiscal stimulus will be able to change the situation, and believe that the world economy is on the verge of another crisis.
In these circumstances gold remains the most attractive asset for investment. With the reduction of the world's precious metal index rose by 8.7% from the beginning of the year and maintains good prospects for further growth.
The economic calendar today, the focus will be on US inflation report. Perhaps these figures will change investors' expectations for further Fed action to adjust the basic parameters of monetary policy.
In the graph, the situation remains rather uncertain. Bears still can not push the support at 1650.00. Therefore, the prospects for the development of corrective movement remains limited. At the top is also quite strong resistance level - 1680.00, which the bulls will be difficult to overcome. We are waiting for consolidation in a range 1650.00-1680.00.
Levels of resistance XAUUSD: 1680.00, 1700.00, 1720.00;
Support levels XAUUSD: 1650.00, 1635.00, 1605.00.
The main scenario - XAUUSD consolidation in a range 1650.00-1680.00.
Alternative - the breakdown of support at 1650.00 and reduced XAUUSD to 1635.00.
Fundamental background - moderately positive. Trade XAUUSD range of 1650.00-1680.00 boundaries.
Analysis and forecast of the price of gold today FORTFS