Gold enters the trading week practically unchanged, maintaining the potential for further growth.
Numerous factors remain on the market that can stimulate the demand for gold and other defensive assets. Over the weekend, record numbers were recorded for the daily increase in the number of COVID-19 cases in the world. The difficult epidemiological situation in many regions of the world significantly complicates the recovery of the global economy.
Exports from Japan fell by 26.2% in June compared to the same period last year, according to data released today. A month earlier, this indicator showed a decline of 28.3%. The consequences of the pandemic continue to put strong pressure on the fourth economy in the world.
The situation on stock markets may have a positive impact on gold today. Asian indices closed in the red zone. European indices may also experience serious pressure because the EU leaders still cannot reach an agreement on issues related to the formation of the economic recovery fund. Negotiations are currently ongoing.
The United States Congress will also begin discussions this week on a new stimulus package amid rising COVID-19 cases in some states.
Today, there are no important publications of statistical data in the economic calendar. Investors will follow the results of the EU summit and the mood on the stock markets.
Regarding the chart, gold is still constrained in the flat of 1793.00-1812.00. Buyers are increasing upward pressure to the 1812.00 level. Today we can expect a breakdown of this mark and further growth of quotations to the level of 1820.00.
Resistance levels: 1812.00, 1820.00, 1830.00;
Support levels: 1805.00,1793.00, 1774.00.
The main scenario - growth towards 1820.00.
An alternative scenario - a consolidation in the range of 1793.00-1812.00.
The current fundamental outlook is neutral. We would consider longs in a range around the level of 1805.00.
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