On Thursday, gold is slightly declining. Investors react to news from China. Today, the People’s Bank of China decided to reduce the interest rate on loans for first-class borrowers from 4.15% to 4.05%. The rate on five-year and longer-term loans was also reduced from 4.80% to 4.75%. Thus, the regulator continues to implement measures to mitigate the economic consequences of the coronavirus epidemic. At the same time, the authorities of the country, apparently, managed to take the virus under control. On the third day in a row, the number of newly diagnosed cases continues to decline.
USD remains an important pressure factor for gold. The USD index has reached its maximum value since May, 2017. Due to stronger USD, gold becomes more expensive for foreign investors.
Within the economic calendar today it is important to focus on the publication of the last ECB meeting report regarding monetary policy and Federal Reserve Bank of Philadelphia indices.
The chart demonstrates signals in favor of a downward correctional decline. A reversal signal was formed yesterday - a false breakdown of the local maximum at 1611.00. Accordingly, today we are expecting the quotes to decline in the direction of immediate support at 1600.00.
Resistance Levels: 1611.00, 1615.00, 1630.00;
Support Levels: 1600.00, 1585.00, 1563.00.
The main scenario - a decline towards 1600.00.
An alternative scenario - a consolidation above the level of 1611.00 and growth towards 1630.00.
The fundamental outlook is moderately negative. Within the daily framework, we consider shorts from the level of 1611.00.
Only from March 24th to April 24th, 2020, Deposit Bonus 200% will be 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 […]
The biggest FortFS bonus is back for 4 days only! Only from 17.03 to 20.03 every FortFS client will have a chance to get $10000 cents no deposit bonus! How to participate? To have a FortFS account To be a member of the official FortFS chat-group in Telegram (@fortfs_chat) Detailed Terms and Conditions will be available across our social […]