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

Gold recovers due to USD decline and negative news on US-China trade relations

Gold partially restored its previously lost position due to the weakening dollar and US Treasury yields, as well as comments made by US Treasury Secretary Stephen Mnuchin before the signing of an interim foreign trade agreement between the US and China.

The dollar index was locally under pressure amid the publication of weak data on the labor market on Friday and an inflation report on Tuesday. For the same reason, government bond yields are declining. Investors believe that the Federal Reserve will have to adhere to a softer monetary policy to further stimulate the economy and achieve the target inflation rate.

Another support factor for gold was the statement made by US Treasury Secretary Stephen Mnuchin, who noted that the lifting of previously imposed trade restrictions would only be possible after the second part of the foreign trade agreement was signed. Previously, the parties stated that the cancellation of tariffs will occur after the signing of the first part of the agreement. According to its sources, Bloomberg reports that negotiations on the second stage can begin only after the US presidential election in November of this year.

A local reversal signal is formed on the chart. We can expect the development of corrective movement in the direction of the level of 1560.00. The key support within the day is the level of 1542.00.

Resistance Levels: 1560.00, 1573.00, 1585.00;

Support Levels: 1542.00, 1530.00, 1515.00.

The main scenario - a correction towards 1542.00 and an increase to 1560.00.

An alternative scenario - a consolidation below 1542.00 and a decline towards 1530.00.

The fundamental outlook is moderately positive. Within the daily framework, we consider longs from the level of 1542.00

Latest news

DEPOSIT BONUS 200%: PROLONGED TILL 04 JANUARY 2021!

2020-12-04 08:57:41

Only from November 02nd, 2020, to January 04th, 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 […]

No Deposit Bonus 100 USD – available for 3 days only!

2020-11-23 08:44:40

Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! πŸ† Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts πŸ“ How to get the bonus: 1) Register an […]