During the Asian trading session, gold prices surpassed the 3-month highs and are now held above the $1,520 mark. Quotation growth occurs at reduced trading volumes. On the eve of the New Year, investors give preference to protective assets due to the increasing geopolitical tensions in the world.
US-China trade negotiations are still in the spotlight. According to Fox News, recently the White House adviser Peter Navarro stated that an interim foreign trade agreement could be signed next week. According to the South China Morning Post, Chinese Deputy Prime Minister Liu He will visit Washington on January 4, presumably to sign the first part of the foreign trade agreement. If these messages are confirmed, then at the beginning of 2020 we can expect a fairly strong decline in the value of gold.
Regarding the chart, the price broke through resistance at the level of 1515.00, therefore, the next target for bulls is the level of 1530.00.
Resistance Levels: 1530.00, 1555.00, 1565.00;
Support Levels: 1515.00, 1507.00, 1490.00.
The main scenario - an increase towards 1530.00 and further downward movement.
An alternative scenario - a decline of quotations from current levels.
The fundamental outlook is neutral. Bullish signals prevail on the chart, so within the daily framework we consider longs based on the support levels of 1515.00 and 1507.00.
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