Gold has moved above $1,780 per ounce. Investors returned their attention to defensive assets amid reports of a rising number of COVID-19 cases in the United States, Australia, and other countries.
According to Johns Hopkins University, as of July 7, more than 11.5 million cases of the disease have been reported worldwide, including 3 million in the United States. Investors fear that the global economic recovery will be short-lived and that amid a new wave of pandemic, economic activity in key regions of the world will fall again.
According to Bank of America analysts, even after the creation of the COVID-19 vaccine, the global economy will overcome the consequences of the pandemic for many years. Considering the above, gold remains the main asset for risk mitigation.
Many experts predict that after local growth on stock exchanges, investors will behave more carefully and gold will maintain an upward movement vector.
Today there are no important events in the economic calendar, therefore, geopolitical news and the situation on stock exchanges will have a key impact on trading. Currently the main indexes are trading in the red zone, providing additional support for gold and other protective assets.
Regarding the chart, the price is fixed above the mark of 1780.00. We predict a further upward movement targeted at 1800.00.
Resistance Levels: 1800.00, 1820.00, 1830.00;
Support Levels: 1780.00, 1760.00, 1745.00.
The main scenario - an increase towards 1800.00.
An alternative scenario - a decline under 1780.00 and a rollback to 1760.00.
The current fundamental outlook is moderately positive. We would consider longs from the level of 1780.00.
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