Precious metals yesterday was unable to update the trading week highs. The day was closed with a slight decline amid rising US stock indexes. Experts note that the growth indices could be associated with the statements of the World Health Organization, which has recognized the seriousness of coronavirus infection outbreak and announced an emergency of international importance, but did not impose restrictions on international trade and travel.
Today, gold is trading steady, keeping a good opportunity for the resumption of the upward movement. The focus of investors are news related to the spread of coronavirus. According to the latest information, the number of infected close to the mark of 10 thousand. Man. Died from the virus 213. Experts believe that the damage caused by a new virus to the Chinese economy will be more important than that of the SARS outbreak in 2003. Goldman Sachs experts believe that China's GDP growth in the 4th quarter may slow down to 4.0%.
On the chart the price is near the support 1569.50. From this level you can expect a resumption of the upward movement. The closest target for buyers is the level of 1585.00.
Levels of resistance: 1585.00, 1600.00, 1611.00;
Support levels: 1569.50, 1550.00, 1542.00.
The main scenario - increase to 1585.00.
Alternative - the breakdown of the intraday support at 1569.50 and decline to 1550.00.
Fundamental background - moderately positive. The price is near the support level of 1569.50 from which can be considered short-term buying tool
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