Gold finished trading on Tuesday with a growth of more than 0.4%, due to support from the dollar, which, while awaiting the decision of the FOMC, closes its third day in negative territory. The growth of quotations could have been more significant, but during the American trading session, the yellow metal was under pressure from conflicting news about the course of the US-China trade negotiations. The agency Bloomberg has spread the information that China does not want to make concessions on a number of important issues related to intellectual property, which impedes the further course of the negotiation process. At the same time, Bloomberg sources say that the trade representative and the US Treasury Secretary intend to visit Beijing next week for a new round of trade negotiations, which has been going on for more than three months. Now, despite the differences, the negotiations are in the final stage and should be completed by the end of April according to expectations.
Today, investors continue to actively discuss Bloomberg information published yesterday regarding the progress of trade negotiations, but the market’s focus will be on the outcome of the two-day FOMC meeting. The market expects that the regulator will keep the rates unchanged, therefore the comments of the head of the Federal Reserve Jerome Powell and the regulator's forecasts on the main economic indicators and interest rates are of the greatest interest. There are concerns that inconclusive internal statistics may seriously affect the Fed's rhetoric, it may become softer. Yesterday, Bank Of America did not rule out the possibility of lowering the rate by 25 bp. The predominance of negative market expectations will put pressure on the dollar during the trading day, contributing to the growth of gold prices. In the future, the market situation will be determined by the decisions of the FOMC.
On the chart yesterday, the local resistance level of 1310.00 was tested, from which a slight price pullback took place. Now buyers are trying to resume movement upwards, so during the day we can expect another price approach to the level of 1310.00. Increased upward pressure on the mark is a good signal of its breakdown and further development of the bullish movement with promising targets at the levels of 1340.00 and 1350.00.
Resistance Levels: 1310.00, 1315.00, 1320.00;
Support levels: 1302.00, 1295.00, 1285.00.
The main scenario - growth to 1310.00, and in the future it is possible to 1340.00
An alternative scenario - the breakdown of support at 1302.00 and a decline to 1295.00.
Gold retains very good opportunities for the further development of the bullish movement, so we give preference to longs that are to be found at the level of 1302.00.
Only from April 12, 2021, to May 14, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications