Gold is constrained in a very narrow range today amid a shortage of important economic and geopolitical news.
The situation on the stock markets exerts moderate pressure on gold. Asian indices open the week in the green zone due to reports that the US Food and Drug Administration (FDA) has authorized the use of plasma from recovered patients for the treatment of COVID-19. Investors hope for an improvement in the epidemiological situation in the United States and a faster recovery of the world's largest economy.
The Financial Times also reports that the Trump administration is looking for ways to circumvent US regulatory standards to expedite the receipt of an experimental COVID-19 vaccine from the UK for use in the US ahead of the presidential election.
On the other hand, support for gold and other commodity assets is provided by the dynamics of the movement of the American currency. After recovering by 0.4% last week, on Monday the dollar index sank more than 0.1% and continues to decline. Gold remains closely inversely correlated with the dollar.
There is no important news on the economic calendar today. The dynamics of the movement of gold will largely be determined by investor sentiment on stock markets and the dynamics of the USD.
On the chart, the price bounced quite strongly from the level of 1914.00. Locally, we can expect a moderate growth in quotations towards the level of 1955.00.
The main scenario - growth to 1955.00.
An alternative scenario - a decline to 1914.00.
The current fundamental outlook is neutral. We consider longs from the level of 1925.00.
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