Gold is trading for the third day in a fairly narrow range, keeping the horizontal direction of movement. This is primarily due to the lack of important economic and geopolitical news on the market, which could significantly affect the price dynamics.
A certain pressure on the price continues to have the US dollar, which retains its leading position in the foreign exchange market. However, sufficiently high geopolitical risks support the demand for gold, while maintaining the balance of the market.
Today, the focus of financial markets will be the ECB meeting and the final press conference of Mario Draghi. Most investors expect the key parameters of monetary policy to remain unchanged, but expect the regulator to signal its intention to lower interest rates in the fall. This decision can further strengthen the position of the dollar in the foreign exchange market, which for gold will be quite a strong bearish signal. Therefore, this instrument is dominated by negative expectations.
On the graph, the situation for the day has not changed significantly. The price consolidates in the range between the levels of 1415.00-1428.00, retaining approximately equal chances of getting out of the outset, both up and down.
Resistance Levels: 1428.00, 1438.00, 1450.00;
Support levels: 1415.00, 1400.00, 1383.00.
The main scenario - the further development of the outset 1415.00-1428.00 with the possible expansion of this range.
An alternative scenario - the breakdown of support at 1415.00 and a decline to 1400.00.
There is a high uncertainty on the market, so we recommend so far to refrain from trading and wait for the formation of clearer signals on the chart.
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