Gold maintains a downward movement vector because the market is experiencing an increase in risky attitude before the signing of an interim foreign trade agreement between the United States and China. The expectations associated with this contribute to the growth of global stocks and a decrease in demand for safe assets (gold, Japanese yen, etc.).
U.S. sales representative Robert Lighthizer said the Chinese translation of the agreement is nearly complete and will be released on Wednesday. US Treasury Secretary Stephen Mnuchin in an interview with Fox News stated that Beijing promised to buy agricultural goods worth of US $40 to $50 billion annually and industrial goods worth of $200 billion over the next two years.
The market also positively perceived reports that two days before the signing of the agreement, the United States excluded China from the list of countries involved in currency manipulation. These reports further eased tensions between the two countries.
A positive impact on the stock market had statistics from China. Exports and imports significantly exceeded market expectations, indicating a gradual economic recovery amid weakening trade tensions with the United States.
In addition to geopolitical news today, the market will closely monitor the publication of the consumer price index data for December in the United States.
A downward wave continues to develop on the chart. The price has pushed support at the level of 1542.00 and is ready to continue moving down. The target is the level of 1530.00.
Resistance Levels: 1542.00, 1560.00, 1573.00;
Support Levels: 1530.00, 1515.00, 1507.00.
The main scenario - a decline towards 1530.00.
An alternative scenario - a consolidation above 1542.00 and growth towards 1560.00.
The fundamental outlook is negative. We still give priority to shorts, which should be considered no lower than the level of 1550.00.
Only from April 12, 2021, to May 14, 2021, Deposit Bonus 200% is 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 […]
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications