flag-gb flag-my flag-zh flag-id flag-th flag-vi

Gold: demand for defensive assets continues to decline

For the fourth day in a row, gold completes trading in the red zone amid declining demand for safe assets.

Investors react positively to signals of a decrease in tensions between the United States and China and hope for an early resolution of the trade conflict, which for a long time put serious pressure on financial markets. According to reports by the South China Morning Post, China is ready to make some concessions on the purchase of agricultural products from the United States in the hope of concluding a trade agreement. Also today, China has published a list of goods that from September 17 will be exempt from additional duties.

The American dollar continues to exert some pressure on the yellow metal, the index of which is trading near two-year highs. Demand for the dollar remains high due to the weakening of other world currencies amid monetary easing by the central banks. According to reports of the Bank for International Settlements, in August 14 central banks immediately reduced interest rates.

Today, in addition to geopolitical news, it is worth paying attention to the publication of data on the producer price index in the United States. But, most likely, the situation on the stock exchanges will still have a stronger impact on trading.

On the chart, the price continues to trade near the important support level of 1485.00. So far, the bears have failed to push through this level, therefore, we consider the scenario with the resumption of upward movement as a priority. The nearest targets are at 1504.00 and 1523.00.

Resistance Levels: 1504.00, 1523.00, 1555.00;

Support Levels: 1485.00, 1455.00, 1430.00.

The main scenario is an increase in the direction of the level of 1504.00.

An alternative scenario is the breakdown of support at 1485.00 and the development of the medium-term downward movement to 1455.00.

A moderately negative fundamental background locally prevails on the market, but the price continues to be kept above the strong support level of 1485.00 on the chart. Therefore, short-term preference is given to longs.

Latest news

FortFS 10-year anniversary = 10% cashback

2020-06-30 08:40:55

To celebrate our 10-year anniversary we are going to provide a 10% compensation for every trading order closed at a loss to all Clients! PARTICIPATE IN THE PROMOTION TO GET THE MOST OUT OF TRADING WITH FORTFS: Compensation for every trading order closed at a loss Fully withdrawable without trading turnover requirements Compatible with deposit […]

+$500 FOR TRADING

2020-05-27 07:58:43

Trade and receive real money for each 10th completed lot USE THE BONUS AND GET THE FOLLOWING BENEFITS: Unlimited withdrawal Compatible with Megaprotect and Deposit Bonus Available for cents and swap-free accounts HOW TO GET BONUS? To have a valid trading account To maintain the minimum account balance of 100 USD Keep trading and receive bonus funds for […]