flag-gb flag-my flag-zh flag-id flag-th flag-vi

Gold is still prone to decline

On Monday, gold was trading in a very narrow price range and closed at the opening level of the day. Such calm trading was related to the fact that there was practically no important economic and geopolitical news on the market that could disrupt the balance of the market.

The US dollar closed with minimal deviations relative to the opening price and practically had no effect on gold. Geopolitics news and the situation on the stock markets also had a limited impact on the yellow metal, because now many investors are investing in other protective assets to diversify their risks. Yesterday, the main topic in the stock market was the escalation of the conflict between the United States and China around the Chinese company Huawei. The situation was defused after the issuance of Huawei temporary license to do business in the United States.

Today, trading at the Asian session was fairly quiet, despite the speech of Jerome Powell, which may later adversely affect the dynamics of the dollar. In his speech, Powell focused on increasing the level of corporate debt, which increases the risks for the US economy, as companies' debt obligations reached historical highs relative to the size of the economy.

Today, there will not be many important economic news on the market again. Among the most significant events can be identified only data on sales in the secondary housing market in the United States and the performance of a member of FOMC Rosengren. Therefore, there is a high probability that in the near future, volatility will remain at a low level.

The situation on the graph for the day has not changed. Locally, the market is dominated by the downward trend, so the priority remains the scenario with the price leaving the current consolidation down. Accordingly, the level of 1279.50 is still seen as the main intraday resistance, and the closest target for the decline is the mark of 1270.00.

Resistance Levels: 1279.50, 1289.00, 1300.00;

Support levels: 1270.00, 1265.00, 1260.00.

The main scenario - retest level 1279.50 and turn down.

The alternative scenario is the further development of the downward movement from current levels.

Locally, the news background on the market can be described as neutral, but the chart is still dominated by signals indicating a continuation of the bearish trend, therefore, within the day, shorts should be preferred, which should be looked for at 1279.50.

Latest news

Share posts and earn money

2020-09-16 08:29:16

We are launching the long-awaited rewards program for all subscribers of our social networks – share posts with your friends and get money on your FortFS account as a reward! 🥇 The participants will get the following benefits: • Real money for reposts • The reward is available for withdrawal without restrictions • You can […]

No Deposit Bonus 100 USD

2020-08-20 20:43:20

Dear Traders, Make sure to receive $100 on your trading accounts only from the 20th to the 28th of August! No Deposit Bonus 100 USD is the best way to start trading and test all of the Company’s products! GET BONUS The bonus features: Withdrawal of up to 100 USD 75 lots of trading turnover […]