Gold is trading at the highest level in more than two weeks of trading the benefit of support from the dollar and the strengthening of political uncertainty in the United States.
Sufficient pressure on the US currency was unexpectedly weak data on consumer confidence. During the month index fell from 134.2 to 125.1 points. Many investors believe that this data is an argument in favor of further easing of monetary policy in the US, and a driver for further growth of gold.
No less important supporting factor for gold were to start impeachment of President of the USA Posts procedures. Donald Trump accused of using his position to deal with political opponents, after it became aware of the fact that Trump has suspended financial assistance to Ukraine, demanded an investigation of the candidate activity for the presidency of the Democratic Party, Joe Biden and his son. US stock market reacted to the decline in these messages, which traditionally increases investor interest in defensive assets.
Today, investors will be keen interest to follow the development of the political situation in the United States. Also during the US trading session, pay attention to the speech of FOMC members Easter Lael Brainard and George, as well as the publication of new home sales report.
After a small correction to reduce the price of gold has been able to overcome the resistance at 1523.00. This bodes well for the continuation of the upward movement in the direction of the medium-term objective at the level of 1555.00.
Levels of resistance: 1540.00, 1550.00, 1560.00;
Support levels: 1520.00, 1502.00, 1485.00.
The main scenario - a correction in the area of 1520.00 and the resumption of the upward movement.
Alternative scenario - further development of an upward movement from the current levels.
The fundamental backdrop for gold is moderately positive. Within days should consider buying when prices roll back to the mark of 1520.00.
Gold forecast for today Gold