Gold set a new all-time high today, after which the price started a correction.
The fundamental background in the market has not changed. High demand for gold is supported by declining yields in US Treasuries, a weak dollar and soft policies from the FRS and other Central Banks.
The formation of a correctional wave today is primarily associated with the influence of technical factors. Some investors took long speculative positions ahead of the weekend amid new all-time highs in trading.
US lawmakers again failed to agree on the parameters of a new economic assistance program. The White House has threatened that the agreement should be concluded before the end of this week. Otherwise, Trump will launch the implementation of economic support measures bypassing Congress. Political uncertainty in the US is increasing pressure on the USD.
Donald Trump's new decree banning all financial transactions with China's WeChat services from Tencent and Tiktok from ByteDance, which the White House believes pose a threat to US national security, has significantly reduced investor risk appetite. The law will come into force 45 days after publication. Investors expect a deterioration in relations between the United States and China.
The central event of the day will be the report on the US labor market. The dollar has lost its defensive status, so any data below the forecasted values is likely to put pressure on the dollar and boost demand for gold.
Regarding the chart, we still see the absence of reversal signals. Upward movement remains a priority. We consider the level of 2052.00 as the nearest support. The nearest resistance level is at 2070.00. In case of a breakdown, we expect the growth of quotations to 2090.00 and 2100.00.
Resistance levels: 2070.00, 2090.00, 2100.00;
Support levels: 2052.00, 2030.00, 2000.00.
The main scenario - a breakdown of resistance at 2070.00 and further growth
An alternative scenario - a breakdown of support at 2052.00 and a decline to 2030.00.
The current fundamental outlook is positive. We are considering longs from the levels 2052.00 and 2030.00.
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