Gold ended the trading week on a positive note, managing to win back some of the losses incurred earlier.
The main driver of growth of quotations on Friday was the American dollar, which reacted rather volatilely to published statistics from the United States. Despite the release of very strong data on GDP growth (a fact of 3.2%, the forecast is 2.0%), the dollar index sank significantly, departing from the maximum trading values since June 2017.
Nevertheless, the globally yellow metal remains under strong pressure, because against the background of strong economic data from the United States, many investors, trying to protect themselves from the increased risks of a slowdown in the global economy, give their preference to the US currency, considering it as one of the main defensive assets.
The main event of the upcoming week for both the American currency and gold will be the FOMC meeting, from which investors expect clarification of the situation regarding the regulator's further actions on monetary policy adjustment for 2019. Accordingly, until Wednesday, trading volatility is likely to remain quite low, since most investors will expect Fed decisions and comments.
On the chart, a correctional wave continues to develop locally. This correction can be continued in the coming days, but in our opinion the potential for current price growth will be limited to 1287.50-1294.00, where we can expect the completion of the rolling back movement and resumption of the downward movement in the direction of 1270.00.
Resistance Levels: 1287.50, 1294.00, 1310.00; Support levels: 1279.50, 1277.00, 1270.00.
The main scenario is a decline to 1279.50.
An alternative scenario - consolidation above 1287.50 and growth to 1294.00.
The correction movement has reached a strong resistance area, where we can expect the formation of a reversal, therefore, within the day, we give preference to instrument shorts, which can be searched at the level of 1286.00.
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