Gold is currently trading near yesterday's maximum around the level of $1,820. The quotes are supported by news about the implementation of new stimulus measures in the EU, USA, Australia and other countries. The buildup of stimulus measures and the Central Bank's soft monetary policy will inevitably lead to a weakening of national currencies. Gold remains the main defense asset.
This morning, EU leaders announced the successful completion of the difficult 4-day negotiations. A new 7-year budget was adopted and all issues related to the formation of an EU economic recovery fund in the amount of 1.8 trillion EUR were agreed.
Regarding the US Congress, the debate on the launch of a new stimulus package is still ongoing. A number of previously implemented measures to support the economy expire at the end of this month, so policymakers must agree on a new stimulus program by the end of this week.
The negative impact on gold may be exerted by the news about successful trials of a vaccine against COVID-19. British company AstraZeneca and the University of Oxford reported yesterday that the COVID-19 vaccine triggers an immune response in all study participants who received two doses. The Chinese company Cansino Biologics and the German company BioNTech, which is developing a vaccine in conjunction with the American pharmaceutical manufacturer Pfizer, also announced positive trials of a vaccine against the virus.
On Tuesday, there is no important news in the economic calendar, so the dominant influence on the trading will be provided by the news of geopolitics and the situation on the stock markets.
The bullish trend continues to develop on the chart. The bulls are increasing upward pressure on the 1820.00 level. We are expecting a breakdown of this mark and further upward movement.
Resistance levels: 1820.00, 1830.00, 1850.00;
Support levels: 1805.00,1793.00, 1774.00.
The main scenario - a breakdown of resistance at 1820.00.
An alternative scenario - a breakdown of support at 1812.00 and a decline to 1793.00.
The current fundamental outlook is moderately positive. We would consider longs in the range of 1812.00-1815.00.
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