Gold is moving in different directions and within a rather limited range today. The market situation remains uncertain, so many investors have taken a wait-and-see attitude and behave rather passively.
Moreover, investors reacted positively to the positive macroeconomic data published the day before in the USA and China. The numbers indicate a gradual recovery of the two largest economies in the world after the shock. In China the manufacturing sector PMI is above 50, while in the US it is recovering from a radical drop to an 11-year low.
But the growing conflict between Beijing and Washington, as well as the unrest in the United States, are seriously limiting risky movements on the market. Recently Chinese Foreign Ministry representative threatened with harsh retaliation against US attempts to intervene in the country's internal affairs. Since Monday, China has suspended imports of soybeans and other agricultural products from the United States, and has also refused some supplies of pork.
The day before, Donald Trump criticized the actions of many governors and called for a more stringent response to the unrest in the cities. The American president authorized the entry of troops into Washington and called the protests "domestic terrorism."
Against the background of general uncertainty, demand for gold and other protective assets remains stably high, but this is not enough for the development of directional trend movement.
There is no important news in the economic calendar today.
Regarding the chart, the instrument consolidates in a fairly limited range. Most likely, in the near future we will see a new flat with borders at the levels of 1725.00-1750.00.
Resistance Levels: 1750.00, 1765.00, 1780.00;
Support Levels: 1725.00, 1695.00, 1670.00.
The main scenario - flat movement in the range of 1725.00-1750.00.
An alternative scenario - a breakdown of support at the level of 1725.00 and a decline towards 1715.00.
The current fundamental outlook is neutral. We would consider shorts from the level of 1750.00.
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