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

Gold price falls amid declining geopolitical tensions

On Friday, the price of gold continues to fall amid the declining geopolitical tensions. The US and Iran have significantly softened the tone of their statements, abandoning military threats against each other. A positive impact on the stock exchanges was made by official statements of the United States and China. The parties stated that they intend to sign an interim foreign trade agreement next week on the 15th of January.

 

The day before, Donald Trump noted that in the near future the United States and China will begin the second phase of negotiations, but most likely, it will be completed after the US presidential election, which will be held this fall.

 

Stock markets react to this news very positively. On Thursday, Dow, S&P,  and Nasdaq closed at record highs. Today, the bullish momentum is maintained by the Asian and European indices. Obviously, considering these circumstances, gold, as a protective asset, is losing its investment value and the price keeps declining.

 

In addition to geopolitical news, the US Department of Labor monthly report will be in the spotlight today. A stronger report may strengthen the dollar’s position in the market, which will contribute to the further development of the downward movement of gold.

 

A downward wave continues to develop on the chart. Locally, support for the quotes is provided by the level of 1542.00, but today we can expect a breakdown of this level and further development of the downward movement in the direction of the level of 1530.00.

 

Resistance Levels: 1560.00, 1573.00, 1585.00;

 

Support Levels: 1542.00, 1530.00, 1515.00.

 

The main scenario - a breakdown of support at the level of 1542.00 and a decline towards 1530.00.

 

An alternative scenario - a consolidation above 1560.00 and further growth towards 1573.00.

 

The fundamental outlook is negative. Bearish signals prevail on the chart, so within the daily framework we consider shorts from the level of 1560.00.

Latest news

Deposit Bonus 200%

2020-03-19 07:35:21

Only from March 24th to April 24th, 2020, Deposit Bonus 200% will be available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]

No Deposit Bonus $10000 cents

2020-03-13 07:32:02

The biggest FortFS bonus is back for 4 days only! Only from 17.03 to 20.03 every FortFS client will have a chance to get $10000 cents no deposit bonus! How to participate? To have a FortFS account To be a member of the official FortFS chat-group in Telegram (@fortfs_chat) Detailed Terms and Conditions will be available across our social […]