During Friday trading session gold has slightly decreased due to the lack of new risk factors on the market. Demand for protective assets is declining, despite reports of further spread of coronavirus. According to recent data, the number of infected has exceeded 31 thousand people with 638 lethal cases in 27 countries.
On the positive note, a telephone conversation between US and Chinese leaders occured. During the conversation, Trump and Xi reaffirmed their commitment to implement the trade agreement signed in January. The leader of China also noted that the virus will not change the long-term growth plan of the country's economy.
Earlier, the Ministry of Finance of China reported that from February 15, duties on a number of US imported goods will be reduced by $ 75 billion.
The publication of the US labor market report for January will be in the spotlight today. Experts predict the growth of key indicators. If these expectations are met, the US dollar may continue to grow. Gold, however, will be under pressure.
Regarding the chart, the previously noted resistance level of 1569.50 is being tested. At the moment the bears keep the price below this mark, therefore, the priority is the scenario with a decline in quotations towards the level of 1550.00. With the breakdown at 1569.50, we can expect growth towards 1585.00.
Resistance Levels: 1569.50, 1585.00, 1600.00;
Support Levels: 1550.00, 1542.00, 1530.00.
The main scenario - a decline towards 1550.00.
An alternative scenario - a breakdown of resistance at the level of 1569.50 and an increase towards 1585.00.
The fundamental outlook is neutral. The US labor market report may cause significant price fluctuations, so we recommend that you refrain from the instrument today.
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