Gold opens trading on Monday near previously set 3-month lows. Precious metal remains under strong pressure by the dollar and positive sentiment on the stock exchanges. The dollar index continues to be held at its highest levels since mid-October, and the American stock market closed trading at historic highs on Friday. The weekly increase in yield on treasury bonds was the strongest in the last month. On Friday, the yield on 10-year securities rose to the level of 1.930%, which is the highest value since the end of July.
Obviously, against this background, gold lost its investment attractiveness and maintains a downward trend in the medium term.
Despite serious pressure today, gold has a good chance of local recovery amid a decline in the Asian and European stock markets. Traders reacted negatively to Trump's comments about the lack of agreements with China on the abolition of previously imposed duties. Price will also be driven by purely technical factors. Many speculative investors began to close short positions in gold after updating 3-month trading lows.
On the chart, the price tested support at 1460.00. This is a very strong level, from which we can expect the corrective movement. The first bullish signals have already been received, so today we are waiting for a moderate increase in quotes.
Resistance Levels: 1475.00, 1485.00, 1495.00;
Support Levels: 1465.00, 1450.00, 1435.00.
The main scenario is an increase to 1475.00.
An alternative scenario is a breakdown of support at 1.14605 and a decline to 1450.00.
Locally, a positive news background dominates the market. There are signals on the chart for beginning of correctional movement. Inside the day we consider longs with very moderate risks from the level of 1460.00.
Dear traders and partners, FortFS is happy to congratulate all Traders on the Year of the Metal Rat and to launch the annual Chinese New Year promotion! From February 03 to March 03 you will be able to receive a cashback of 10% for every deposit from 100 USD. Deposit minimum 100 USD or more, […]
Dear Traders, Make sure to receive $100 on your trading accounts only from the 27th to the 31st of January! Welcome Bonus 100 USD is the best way to start trading and test all of the Company’s products! The bonus features: Withdrawal of up to 100 USD 75 lots of trading turnover A two-week testing […]