Gold finished trading on Tuesday in the red zone, being under pressure from the US currency. The dollar index began to actively strengthen after the publication of good data on consumer confidence index CB. The actual figure in May got 134.1 points, while experts expected the rate to rise to 130.1, against 129.2 a month earlier. This leading indicator demonstrates a possible recovery or decline in consumer spending in the coming months. Accordingly, the growth of the indicator suggests that the protracted trade conflict between the United States and China did not greatly affect the economic activity of consumers and they expect further economic growth in the short term.
Gold is still supported by the situation on stock exchanges, where interest in risky assets continues to fall. Both European and American indices closed trading in the red zone yesterday, amid growing concerns about international trade. Due to the high demand for protective assets, the yellow metal quite successfully resists the onslaught of the dollar and today was able to win back some of the losses incurred yesterday.
There is no important news in the US economic calendar today, so the main influence on gold will be provided by news related to international trade, the situation on stock exchanges and the economic statistics from the EU.
Now we see how the price recovers after an unsuccessful attempt to break the level of 1278.00. Intraday this is a key support level from which we can expect further development of the upward movement in the direction of 1289.00. But, if the bulls can not keep the price above 1278.00, the option of reducing the price to 1270.00 will become more relevant.
Resistance Levels: 1284.00, 1289.00, 1300.00;
Support levels: 1278.00, 1270.00, 1265.00.
The main scenario - growth in the direction of 1289.00.
Alternative scenario - fixing below 1278.00 and a decline to 1270.00
Despite yesterday's decline, gold retains good opportunities for recovery, due to the high demand for risk-free assets. Therefore, within the day, we give preference to longs that should be looked for in the area of 1278.00.
Only from November 02nd, 2020, to January 04th, 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 […]
Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! 🏆 Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts 📍 How to get the bonus: 1) Register an […]