Gold is at a moderate decline today in anticipation of the publication of data on the US labor market.
The main event of today will be the publication of the May report on the US labor market. Analyzing the publication of preliminary data, experts predict a further deterioration of the situation. In May, around 8 million jobs were lost. Against this background, experts expect an increase in unemployment from 14.7% to 19.8%. This will be a record unemployment rate for the entire post-war period.
A weak report on the US labor market can provide significant support to gold and other protective assets, which this week lost a significant part of their positions. Investors' risk appetite has grown due to more optimistic forecasts for the global economic recovery. Weak US macroeconomic indicators could significantly undermine this optimism and increase demand for safer assets.
USD dynamics still provide support to gold, falling down for the 9th day in a row. All commodity assets that are denominated in US currency become more accessible to foreign investors.
Regarding the chart, the bulls managed to defend support at the level of 1695.00. Therefore, today, as a priority, we consider the scenario with the growth of quotations. The immediate goal is the level of 1725.00.
Resistance Levels: 1725.00, 1750.00, 1765.00;
Support Levels: 1695.00, 1670.00, 1645.00.
The main scenario - a decline towards 1700.00 and an increase to 1725.00.
An alternative scenario - growth to the level of 1725.00 from current levels.
The current outlook is neutral. We consider longs from the level of 1700.00 with very moderate risks.
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