During the Asian session, the price of gold increased by 0.2% amid a moderate easing of pressure from the US currency. Investors are selling the USD in anticipation of the announcement of the FOMC two-day meeting results.
The FOMC meeting is the central event of today. Investors do not expect significant changes in monetary policy from the regulator, but they will closely monitor the performance of FRS Chairman, Jerome Powell. Hints of further strengthening stimulus measures may provide significant support for gold, which is the main asset to protect against inflation and depreciation of major currencies.
Another important event of the day will be the publication of data on the initial assessment of changes in US GDP for the first quarter. A decrease of 4.0% is expected.
Traditionally, the situation on the stock exchanges will have a strong influence on the dynamics of gold movement. Quarterly reporting is expected from companies such as Facebook, Tesla and Boeing, so today is going to be busy in this regard as well.
Regarding the chart, a retreat is developing from the level of 1695.00, but so far the bulls are not even trying to storm the resistance at the level of 1722.00. Therefore, the priority is the scenario with a decrease in quotations and a retest of the 1695.00 level.
Resistance Levels: 1722.00, 1740.00, 1755.00;
Support Levels: 1695.00, 1675.00, 1645.00.
The main scenario - a decline towards 1695.00
An alternative scenario - a breakdown of resistance at the level of 1722.00 and an increase towards 1740.00.
The current fundamental outlook is neutral. Regarding the chart, there is a slight preponderance of signals in the direction of a downward movement. Today should be a very volatile day, therefore, it is worth opening positions with very moderate risks. We expect to find entry points near the level of 1722.00.
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