On Tuesday, gold is trading with an increase of 0.4% on the background of a sharp decline in risk sentiment in the market. Asian indices closed in the red zone for fear of the outbreak of a new strain of coronavirus in China. Many experts were reminded of the consequences of the SARS outbreak in 2003.
Good support factor for the precious metals was a report of the IMF, which has been preserved quite gloomy forecast for the development of the world economy in 2020. The IMF lowered its forecast for global growth this year to 3.4% (in October) to 3.3%. The downward revised forecasts for the US economy and the EU. There were also revised down the forecasts for 2021.
Negative bidders took the news that Moody's has downgraded the credit rating of Hong Kong, due to the lack of progress in addressing the economic, political and social problems of the region.
The stock market continues to move downward, while gold and other defensive assets continue to be strengthened.
bovine signals dominate in the graph. After a brief consolidation price could break through the resistance at 1560.00. Accordingly, the next target for bulls now stands level 1573.00.
Levels of resistance: 1573.00, 1585.00, 1600.00;
Support levels: 1560.00, 1550.00, 1542.00.
The main scenario - growth in 1573.00 from current levels.
Alternative Scenario - correction to 1560.00 and the resumption of the upward movement.
Fundamental background - moderately positive. Consider buying short-term instrument. Entry points are looking at levels of 1565.00 and 1560.00.
Analytics and forecast gold prices FORTFS