Gold on Thursday is traded in different directions, keeping close to the opening level of the day. Investors are closely monitoring the situation on stock exchanges. Asian indexes today completed trading in different directions, waiting for the publication of fresh data on the U.S. labor market. European indexes at the beginning of trading show restrained growth, limiting the opportunities for strengthening the dollar.
Another risk factor for gold remains speculation on the topic of stopping physical gold purchases by Russia. Experts note that one of the largest holders of gold may start selling it, to cover the growing costs of the coronavirus pandemic and global economic problems. For the same reason, they may reduce their gold reserves and the Central Bank of other countries.
In the economic calendar, the central event of the day will be the weekly report on applications for unemployment benefits in the United States. After the previous sharp growth of 3.283 million experts expect an increase in the number of applications in the reporting week by 3.5 million. At the same time Morgan Stanley analysts do not rule out the growth of the indicator by 4.45 million. Such data can seriously hit the dollar and can become a driver for strengthening gold.
The chart shows the support close to the 1575 level, from which the buyers are trying to develop a new upward wave. The upward pressure at 1595.00 is increasing. Today, we can expect a break-down of this level and the development of upward movement towards the level of 1615.00.
The main scenario is a break-down of the resistance at 1595.00 and a rise to 1615.00.
The alternative scenario is a break-down of the support at 1575.00 and a fall to 1545.00.
The fundamental background is neutral. On the chart, the initiative is locally on the buyers' side. Inside the day, we can consider buying the instrument with very moderate risks from the levels of 1575.00 and 1585.00.
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