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

Bearish gold trend intensifies

The third day in a row gold completes trading in the red zone amid a significant decrease in the demand for protective assets. Now trading takes place at minimum levels since the beginning of August.

The main reason for the decline in quotes remains news related to trade negotiations between the US and China. Investors are optimistic about the signing of an interim foreign trade agreement and are selling traditional safe haven assets.

On the eve, Morgan Stanley analysts published updated forecasts for gold. Experts believe that in case of the signing of an interim agreement and the cancellation of previously introduced trade duties, the price of gold in the 1st quarter of 2020 may fall to a value of $ 1394 per ounce.

Today, international trade news will remain in the spotlight of the market. It is worth paying attention to the speech of Donald Trump at the New York Economic Club. Possible comments regarding the course of trade negotiations can cause significant market fluctuations. The beginning of his speech is scheduled for 17:00 GMT. Also today, four FOMC members, Clarida, Barkin, Harker and Kashkari, are expected to perform at once.

On the chart, we note the absence of any positive signals. Price pushed support at 1459.00, demonstrating the strength of the bearish trend. Therefore, in the near future we expect further development of the downward movement. An intraday target may be the level of 1440.00. Mid-term reduction of quotes to the region of 1400.00 cannot be ruled out.

Resistance Levels: 1459.00, 1470.00, 1485.00;

Support Levels: 1440.00, 1430.00, 1410.00.

The main scenario is a decline to 1440.00.

An alternative scenario is a correction to 1459.00.

The news background remains negative. The chart is dominated by bearish signals. We consider shorts in the range of 1456.00-1459.00.

Latest news

Chinese New Year

2020-02-03 07:08:28

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, […]

Welcome Bonus 100 USD

2020-01-28 09:58:32

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 […]