Gold continues to move up, updating the perennial highs, thanks to support from the dollar and the current situation on the stock markets.
On Monday, most of the day gold was trading in a limited range, while maintaining the lateral directionality of the movement, since there were no drivers on the market for further growth of quotations. The situation has changed somewhat with the start of the American trading session. The dollar began to more actively surrender its positions in the foreign exchange market, and the stock exchanges traded mostly in the red zone, creating favorable conditions for the further development of the bullish movement in gold.
Today, the gold price has reached new five-year highs against the backdrop of a sharp increase in demand for defensive assets, after the media reported that the White House administration is considering withdrawing the United States from the post-war defense treaty with Japan.
Gold was also supported by a new Donald Trump tweet criticizing the Fed. "They rested like a stubborn child, while we need lowering rates and easing policies to compensate for the actions of other countries against us," wrote Trump.
As we see, favorable conditions for the further strengthening of gold remain in the market. Today, in addition to geopolitical news, investors will pay attention to the publication of data on the US consumer confidence index in the USA, data on the sales of new homes, as well as speeches by FOMC members Williams, Bostic and Fed Chairman Jerome Powell.
The chart continues to develop a strong bullish trend with the absence of any signs of a reversal. Therefore, after a small pullback, we can expect further development of the upward movement in the direction of the levels of 1440.00 and 1450.00.
Resistance Levels: 1440.00, 1445.00, 1450.00;
Support levels: 1423.00, 1410.00, 1387.00.
The main scenario - the growth of quotations to 1440.00.
An alternative scenario - a breakdown of local support at 1423.00 and a decline to 1410.00.
The fundamental background for gold remains positive. On the chart, bullish signals still dominate. In the short term, we consider longs the from local support levels of 1423.00 and 1410.00.
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