Gold trading is mixed on Tuesday. Pressure on the price is exerted by the situation on stock exchanges. A support factor is the dynamics of the dollar.
Thus, traders react to the yesterday announced Fed’s decision to increase the asset buyback program by $ 250 billion. Buyback will begin on Tuesday.
Stock markets reacted to this news with growth. Investors welcome the efforts of the Fed and the White House to stabilize and rebuild the world's largest economy. Against this background, demand for gold and other protective assets is declining.
The dollar, after a slight correction at the end of last week, resumed its downward movement. Further easing of monetary policy will increase pressure on the US currency. Against this background, gold and other commodity assets are becoming cheaper for foreign investors.
Today, the May report on US retail sales and Fed Chairman Jerome Powell's congressional statement will be in the spotlight of the market.
After testing the support at 1705.00, the price resumed its upward movement. Bulls hold quotes above the mark of 1723.00, so the scenario with the continuation of the rising wave is a short-term priority. The target is the level of 1750.00.
Resistance Levels: 1750.00, 1765.00, 1780.00;
Support Levels: 1723.00, 1705.00, 1670.00.
The main scenario is consolidation above 1723.00 and growth to 1733.00.
An alternative scenario is consolidation below 1723.00 and a decline to 1705.00.
The current fundamental background is neutral. We consider longs from the level of 1723.00.
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