Gold continues to move steadily upward and at the end of last week the metal was able to demonstrate growth of more than 5.1%, having completed trading at the maximum values since 2013.
The main driver of growth remains the US dollar, which continues to actively surrender its positions across the entire spectrum of the market, amid recent Fed statements, about a possible reduction in interest rates at the next FOMC meeting. These comments led to the strongest weekly decline in the dollar index since February 2018.
Along with the dollar, the yield on US Treasury bonds continues to decline, making the precious metal a more attractive asset for investment, since gold has risen in price by 8.9% since the beginning of the year.
Today, gold is trading with a rise of 0.6%, amid continued weakening of the US currency. On the US economic calendar on Monday there are no important statistical reports, so the future price movement vector will be mainly determined by geopolitical news and investor sentiment on stock markets.
On the chart, after correction to around 1387.00, the price has resumed its upward movement and is now testing the level of 1.1410 for strength again. Most likely today we will see a breakthrough of this level, after which we can expect the formation of a local reversal and the development of a more substantial correctional wave, to the area of 1376.00.
Resistance Levels: 1410.00, 1415.00, 1420.00;
Support levels: 1387.00, 1376.00, 1360.00.
The main scenario is a false breakout of the level of 1410.00 and a decline in the direction of the level of 1376.00.
An alternative scenario - fixing above 1410.00 and further development of the upward movement.
The chart is still dominated by a strong bullish trend, but locally there are no new drivers on the market for further growth of quotes, so we recommend today to take a closer look at short positions after the breakout of the level of 1410.00.
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