Gold finished trading on Wednesday with a rather strong decline amid a stronger dollar and lower demand for defensive assets.
The US dollar yesterday updated three-week highs after the publication of very good data on new home sales and optimistic statements by representatives of the Fed, who do not see the need for further interest rate cuts.
Gold got a negative impact from news related to international trade. Investors welcomed reports of the signing by the United States and Japan of an interim agreement to reduce duties on agricultural products and manufactured goods. Donald Trump also said that a trade agreement between the US and China could be signed earlier than expected. But many experts felt that Trump made this statement in order to divert attention from domestic political problems in the United States.
Today, gold is showing a slight correctional growth amid a local drop in pressure from the dollar. But the potential for further development of the retreat remains limited. The events noted earlier significantly reduced investor interest in defensive assets.
Today, the focus of the market will be the data on the final assessment of US GDP in the 2nd quarter, a report on incomplete sales in the real estate market, as well as speeches by ECB President Mario Draghi and Bank of England Mark Carney.
On the chart, we note an unsuccessful attempt of the price to gain a foothold above the level of 1523.00, which significantly reduces the likelihood of quotes rising to the area of 1555.00 in the near future. The priority now is the scenario with the further development of the range of 1485.00-1523.00.
Resistance Levels: 1515.00, 1527.00, 1555.00;
Support Levels: 1500.00, 1488.00, 1478.00.
The main scenario is a correction to the area of 1515.00 and the resumption of the downward movement.
An alternative scenario is a breakdown of intraday resistance at 1515.00 and an increase to 1527.00.
The fundamental background has sharply changed from positive to negative. On the chart, bearish signals prevail locally. Inside the day we consider shorts from the level of 1515.00
Dear traders and partners, From October 29 to November 30, 2019, FortFS reduces spreads for 2 more pairs: EURJPYf: 1.3 GBPJPYf: 2.8 Spreads on the 4 most popular currency pairs will remain the same: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 Good […]
Dear clients, From November 04 to December 06, 2019, FortFS increases payouts for your current autorebate! The main advantages of Autorebate Extra: Cashback is increased by 10% Get up to 33 USD for 1 lot! Available on FORT, FLEX and cent accounts How to activate Autorebate Extra: Log into the Trader’s cabinet Select “Autorebate” in the left menu […]