Gold traded in a narrow range, while maintaining a good opportunity for further development of local upward movement. Demand for precious metals remains high in spite of the completion of the first phase of the US trade negotiations and China and the growth of stock indices.
Firstly, a strong support for gold continues to the US dollar, whose index is trading at lowest level since July.
Second, the market still fears that the conclusion of an interim agreement between the US and China is only a temporary truce in the large-scale trade war. Many experts point out that the parties are unlikely to reach new agreements in the near future. The United States needs a pause in the trade war to the presidential election. This purpose, they have achieved. There are also serious doubts regarding the compliance by the parties previously reached agreements. In particular, experts say that China is not able to ensure the purchase of agricultural products from the United States in the amount of 200 billion. Dollars.
On the chart trading is still held within a wide horizontal channel 1460.00-1483.00. As part of the outset we can expect growth of quotations to the level of 1483.00.
Levels of resistance: 1483.00, 1490.00, 1505.00;
Support levels: 1460.00, 1455.00, 1450.00.
The main scenario - increase to 1483.00 and the resumption of the downward movement.
Alternative - the breakdown of resistance at 1483.00 and rising to 1490.00.
Fundamental background - neutral. Inside of the day considering sales from the level of 1483.00
Analytics and forecast gold prices FORTFS