Gold on Friday traded with a slight decrease (-0.3%) against the background of the World Health Organization that the current spread of a new strain of coronavirus is not yet a global emergency.
WHO believes the virus is still the problem of the individual local regions of China. But in general, the market remains fairly stable demand for protective assets, as the media regularly publish information on the identification of new cases in various parts of the world. There are also fears that the virus could accelerate the spread of the celebrations of the New Year on the lunar calendar in several Asian countries.
In addition to geopolitical news today, investors will be watching closely the publication of preliminary PMI sectors in EU manufacturing and services data, the United States and other regions of the world. Weaker data may reinforce concerns about the outlook for the global economy and will contribute to the strengthening of gold.
On the chart the bulls once again failed to overcome the resistance at 1567.85. This is a signal in the direction of recoil movement. Most likely in the coming days, the auction will be held in a horizontal range of 1550.00-1567.85.
Levels of resistance: 1567.85, 1585.00, 1600.00;
Support levels: 1550.00, 1542.00, 1530.00.
The main scenario - decline to 1550.00.
Alternative - the breakdown of resistance at 1567.85 and rising towards 1585.00.
Fundamental background - neutral. Trade from the border outset 1550.00-1567.85
Gold forecast every day FORTFS