Against the background of the absence of important economic and geopolitical news on the market, gold trading on Monday was fairly calm and was finished with a slight increase in quotations.
The main support for the price is still provided by the American dollar, which is under some pressure, before the FOMC meeting. The market expects the Fed to show a propensity for a softer monetary policy, which can provide very strong support for gold. Fed policy has a direct impact on the dollar exchange rate, in which the yellow metal is nominated, and the yield of Treasury government bonds, with which gold competes for the greatest investment attractiveness. The weakening of pressure from these factors can give a good impetus to the development of a new bullish momentum on gold.
Today, the market situation is unlikely to undergo major changes, since the United States does not expect the publication of important statistical information that could affect the course of trading. Here you can select only a report on industrial orders, but it is likely that this data will have a limited impact on the market. The dollar will remain under pressure, waiting for the Fed to make a decision, so gold retains very good opportunities for continued moderate growth. The only obstacle to the price growth may be the situation in the stock markets. For the time being, the demand for risky assets remains low, which allows gold to continue to grow, but if the situation changes, trading in gold can turn into flat.
The bull wave continues to develop on the chart, which has very good prospects for further development. At the beginning of the month, in the area of the level 1285.00, a rather strong reversal was formed, which the market is currently working on. As part of this movement, you can count on the restoration of quotations to the level of 1340.00, and possibly to 1350.00. Inside the day you should pay attention to the local support formed yesterday at 1302.00 and the closest strong resistance level at 1310.00.
Resistance Levels: 1310.00, 1315.00, 1320.00;
Support levels: 1302.00, 1295.00, 1285.00.
The main scenario - growth to 1310.00
An alternative scenario - the breakdown of support at 1302.00 and a decline to 1295.00.
For the future, gold retains very good opportunities for growth, as evidenced by both the signals of fundamental and technical analysis. Therefore, now we give preference to longs that should be considered near the level of 1302.00.
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