After a small correction, on Thursday gold resumed its upward movement amid continuing concerns about the prospects for the development of the global economy. The main limiting factor for gold is USD, since all commodity assets are nominated in it. USD is strengthening across the entire spectrum of the market, increasing the value of gold and other commodity assets for foreign investors.
In general, a positive news background supports gold on the market. Key Central Banks continue to increase stimulus measures, which leads to a weakening of national currencies. The spread of the pandemic is not weakening. The pressure on the global economy is increasing. Experts are reviewing forecasts for the decline in development of the global economy. Investors understand that in 2020 it will not be possible to avoid a global recession. Against this background, gold remains the most reliable asset that can protect investor capital.
In the economic calendar today, the focus will be on a large block of statistics from the United States. Investors expect publication of a report on the construction sector for March, weekly data on the number of new applications for unemployment benefits and the publication of indexes from the Federal Reserve Bank of Philadelphia.
Regarding the chart, the bulls managed to keep the price above the level of 1710.00, so the scenario with the development of the upward movement remains a priority. The immediate goal is the level of 1745.00.
Resistance Levels: 1725.00, 1745.00, 1760.00;
Support Levels: 1710.00, 1688.00, 1645.00.
The main scenario - growth towards 1745.00.
An alternative scenario - a breakdown of support at the level of 1710.00 and a decline towards 1688.00.
The fundamental outlook is moderately positive. We prioritize longs. Entry points are to be sought after near the levels of 1710.00 and 1688.00.
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