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

New amazing MegaProtect Bonus!

2020-01-13 09:10:06

WHAT ARE THE BENEFITS OF MEGAPROTECT BONUS? +100% of the deposited amount! 100% protection during the drawdown Up to 5000 USD per one account Up to 15000 USD per one profile

Christmas Fairytale 2019

2019-12-02 07:35:32

FortFS wishes its clients happy upcoming holidays and announces the start of the annual promotion – Christmas Fairy Tale! From December 02, 2019 to January 10, 2020 you can participate in the promotion and get up to $15 for every 10 closed lots with a trading account balance starting from only 100 USD! How to […]