flag-gb flag-my flag-zh flag-id flag-th flag-vi

Gold rises due to the USD decline

On Tuesday, gold prices renewed 9-day highs as the dollar declined to new multi-year lows.

 

The dollar fell to its lowest level since April 2018 after the vice chairman of the US Federal Reserve, Richard Clarida, announced the need to keep interest rates low for a longer time than previously planned. Clarida noted that at the meeting on September 15-16, the regulator will discuss the issue of correctly informing the market about the planned changes in monetary policy. At the same time, he did not say anything about what changes are planned to be discussed and when they will be announced.

 

Now investors believe that the FRS will keep interest rates at lower levels for a longer time than in other countries. The demand for the American currency is falling. The depreciation of the dollar leads to a reduction in the price of all raw materials assets for foreign investors. Gold is again approaching the psychologically important level of $ 2,000 per ounce.

 

In the future, the dynamics of the movement of gold and other trading instruments will be determined by macro data from the EU and the US. Germany will publish the PMI data of the manufacturing sector for August and the report on the labor market. In the EU, preliminary figures for the consumer price index are expected.

 

In the US, the focus will be on ISM Manufacturing PMI (expected to rise from 54.2 to 54.5 points) and FOMC member Lael Brainard's speech.

 

Buyers broke through the resistance at 1971.00 and the price continued to move towards the next target - 1993.00. This is a fairly strong local resistance level, from which a rollback movement can be expected to form. The bullish scenario of movement remains the priority in the medium term.

 

  • Resistance levels: 1993.00, 2008.00, 2030.00.

 

  • Support levels: 1968.00, 1971.00, 1955.00.

 

The main scenario - a rollback to 1968.00 and a renewed upward movement.

 

Alternative scenario - recoilless growth and breakdown of the level of 1993.00.

 

The current fundamental outlook is moderately positive. Within the day, we consider longs when the price rolls back to support at 1968.00.

Latest news

Share posts and earn money

2020-09-16 08:29:16

We are launching the long-awaited rewards program for all subscribers of our social networks – share posts with your friends and get money on your FortFS account as a reward! 🥇 The participants will get the following benefits: • Real money for reposts • The reward is available for withdrawal without restrictions • You can […]

No Deposit Bonus 100 USD

2020-08-20 20:43:20

Dear Traders, Make sure to receive $100 on your trading accounts only from the 20th to the 28th of August! No Deposit Bonus 100 USD is the best way to start trading and test all of the Company’s products! GET BONUS The bonus features: Withdrawal of up to 100 USD 75 lots of trading turnover […]