After three days of moderate growth, gold remains prone to further upward movement. The demand remains stable due to negative news about the deadly strain of coronavirus spread and its impact on the economy of China and other countries. Investors are concerned about the WHO statement that new cases may occur outside of China. The head of WHO expressed concern that the virus began to spread among people who did not visit China. Therefore, the number of infected with the virus can be much larger.
The epidemic continues to have a negative impact not only on the Chinese economy, but also on the economic situation in other countries. Today, the Prime Minister of New Zealand, Jacinda Ardern, stated that the coronavirus epidemic will affect the country's GDP growth, noting that at the moment the situation remains manageable.
Today, the economic calendar does not contain important statistical reports, so the main influence on gold will be exerted by geopolitical news and the situation on stock exchanges.
Regarding the chart, we note an attempt of buyers to gain a foothold above the level of 1569.50. This is a bullish signal, within which we can expect a development of an upward movement towards the level of 1585.00.
Resistance Levels: 1585.00, 1600.00, 1611.00;
Support Levels: 1563.00, 1550.00, 1542.00.
The main scenario - an increase in the direction of 1585.00.
An alternative scenario - consolidation below the level of 1563.00 and a decline towards 1550.00.
The fundamental outlook is moderately positive. Bullish signals prevail locally on the market, so within the daily framework we recommend longs from the level of 1563.00.
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