Gold is holding ground above the $1800 mark due to growing concerns about the spread of coronavirus and tensions between the United States and China.
According to Johns Hopkins University, the number of cases of COVID-19 as of July 14 exceeded 13 million. The number of cases in the USA continues to grow. California Governor Gavin Newsom suspended restaurants, movie theaters, zoos, card rooms and bars throughout the state on Monday, significantly lowering investors' expectations for a faster economic recovery.
Growing tensions between the United States and China are also having a positive effect on gold. On Monday, Mike Pompeo stated that China’s claims to the South China Sea are illegal. In response, the Chinese Embassy in Washington accused the White House of fomenting conflict in the South China Sea.
Economic and geopolitical risks continue to increase, so the demand for gold in the medium and long term will remain stable. Gold has good opportunities to consolidate above the level of $1800 and continue to move up.
Today in the economic calendar it is worth paying attention to the publication of the US inflation report for June.
Regarding the chart, trading takes place in a flat with borders at the levels of 1793.00 - 1820.00. As part of the flat, we are expecting further upward movement to the level of 1820.00.
Resistance Levels: 1820.00, 1830.00, 1850.00;
Support Levels: 1793.00, 1774.00, 1760.00.
The main scenario - growth by 1820.00.
An alternative scenario - a consolidation below 1793.00 and a drop to 1774.00.
The current fundamental outlook is moderately positive. We would consider longs near the level of 1793.00.
Only from April 12, 2021, to May 14, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications