Gold on Tuesday is being traded mainly in the red zone against the background of positive dynamics of world stock indices.
Mitigation of quarantine measures in many countries of the world gives investors hope for a faster recovery of the global economy. The US labor market report published on Friday continues to have a positive impact on stock markets. Apparently, the largest economy in the world is gradually emerging from a state of recession. Investors hope that the peak of the crisis has already been passed. Against this background, the risk appetite is growing, while the demand for traditional protective assets, including gold, is declining.
A strong deterrent to the market remains the two-day FOMC meeting, the results of which will be announced tomorrow. Many investors remain neutral by refraining from active actions on the market. Experts believe that the regulator may hint at a longer period of implementation of soft monetary policy, even in the case of increased inflationary processes. Such statements can have a strong impact on the market.
There is no important news in the economic calendar today. The main impact on trading will have a situation on the stock exchanges and geopolitical news.
On the chart, buyers met resistance at 1705.00. The price has bounced down and from the current positions we can expect the development of a new downward wave in the direction of the levels of 1670.00 and 1645.00.
Resistance Levels: 1705.00, 1725.00, 1750.00;
Support Levels: 1670.00, 1645.00, 1610.00.
The main scenario is a decline to 1670.00.
An alternative scenario is a breakdown of resistance at 1705.00 and an increase in the direction of 1725.00.
The current fundamental background is moderately negative. We consider shorts near the level of 1705.00.
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