On Tuesday, gold finished trading lower, by almost 0.6%, amid a stronger dollar. Good internal statistics actually deprive the Fed of reasons to lower interest rates. Therefore, most investors have somewhat revised their expectations regarding the further actions of the regulator. But yesterday, Jerome Powell, speaking at an event in Paris, noted the growing impact of external factors on the country's economy. Experts interpret the statements of the Fed as a signal that the regulator can mitigate monetary policy against the background of a significant slowdown in the economies of other countries, while ignoring strong data on the US labor market and the growth of consumer income.
Gold is supported by the situation on stock exchanges where major indices are trading in the red zone. US stock indices came under pressure from the oil and gas sector after Trump's statements about progress in the negotiations on the Iranian nuclear program. Also, investors were excited about Trump's statements about the possible introduction of new duties against China, if desired.
Today, the dollar and the situation in the stock market will remain the focus of investors. Among the most important economic events of the day is the publication of data on inflation in the EU and a report on the construction sector in the United States.
On the chart, a very ambiguous situation has now formed, the price is in the middle of a wide sidewall of 1383.00-1438.00 and has almost equal chances of both resuming upward movement and a further decline to the level of 1383.00.
Resistance Levels: 1425.00, 1438.00, 1445.00;
Support levels: 1405.00, 1383.00, 1360.00.
The main scenario - growth to 1438.00.
An alternative scenario - the breakdown of support at 1405.00 and a decline to 1383.00.
The general fundamental background in the market can be described as neutral, while the chart now does not have good signals to enter the market. Therefore, we recommend while refraining from active trading in this instrument.
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