During the Asian trading session on Wednesday, the price of gold stabilized after the Federal Reserve held an extraordinary meeting on Tuesday at which it was decided to reduce the interest rate by 50 bp immediately. This decision sharply weakened the dollar and led to a fall to a record low yield on 10-year treasury bonds. All these factors always contribute to the growth of gold prices. A USD drop makes gold cheaper for foreign investors, and a drop in the yield on treasury bonds increases the attractiveness of gold as a protective asset.
Experts note that precious metals may continue to move up, as investors continue to buy safe assets amid growing signs of a slowdown in the global economy. According to the latest WHO data, coronavirus outside of China is spreading more rapidly than in China itself. Risks for the global economy are intensifying, while finance ministers of the G7 countries and central bankers yesterday were unable to come up with a clear plan of action to deal with the consequences of Covid-19.
Today it is worth paying attention to the publication of data on the change in the number of employees in the non-agricultural sector from ADP and the index of purchasing managers for the US non-manufacturing sector from ISM.
Despite the positive fundamental background, bearish signals prevail on the chart today. The price encountered quite strong resistance in the range of 1647.00-1660.00. At the moment the bulls are unable to gain a foothold in this area. Therefore, as a priority, we consider the scenario with a decrease in quotations. The closest target is 1625.00. If this level gets broken, we are expecting the price to be around 1605.00.
Resistance Levels: 1647.00, 1660.00, 1680.00;
Support Levels: 1625.00, 1605.00, 1575.00.
The main scenario is a decline to 1625.00.
An alternative scenario - a breakdown of resistance at the level of 1647.00 and an increase towards 1660.00.
The fundamental outlook is positive. We consider shorts from the level of 1647.00.
Only from April 12, 2021, to May 14, 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 […]
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications