Gold is now trading in the green zone on the background of escalation of the conflict between the US and China. In the night from Tuesday to Wednesday, the US Senate unanimously passed a bill on the protection of human rights in Hong Kong. The document was sent for further consideration by the House of Representatives. Chinese Foreign Ministry condemned the attempts of the US intervention in China and called the US Embassy representative of internal affairs.
Stock indices reacted to the news decrease. Investors fear the disruption of trade negotiations and aggravation of political and economic confrontation between the US and China. Demand for haven assets grows.
Today, news and geopolitical situation in the stock markets will have the greatest impact on the dynamics of movement of gold. During the American session trading should pay attention to the publication of the minutes of the last meeting of the FOMC.
On the chart the price has returned for the level of 1470.00, which is a signal to continue the upward movement. The immediate goal is the level of 1485.00.
Levels of resistance: 1475.00, 1485.00, 1505.00;
Support levels: 1461.00, 1450.00, 1440.00.
The main scenario - increase to 1485.00.
Alternative Scenario - decline to 1461.00.
Fundamental background - positive. The graph bovine predominate signals. Within days consider buying the level of 1472.00