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

Gold grows due to declining USD and increased demand for defensive assets

On Friday, the price of gold during the Asian session due to the weakening of USD, the decline in the American stock market and statements of the world's leading Central Banks about a possible easing of monetary policy amid uncertainty about the prospects for the global economy.


The dollar came under pressure after the publication of weak macroeconomic statistics. The number of building permits issued in August fell compared to the previous months, and the number of applications for unemployment benefits remains extremely high. The pandemic continues to exert a strong chilling effect on the US economy. Earlier Jerome Powell noted the high uncertainty of the prospects for the development of the US economy.


Weak macroeconomic data and Powell's statements put pressure on the American stock market. The market was dominated by bearish sentiment. Selling risky assets, many investors again gave preference to gold and other traditional defensive assets.


The policy of leading central banks remains a strong long-term support factor for gold. Following the meeting on Thursday, the Bank of England announced that it would consider setting negative interest rates to help the economy withstand a triple threat: the COVID-19 pandemic, rising unemployment and the possibility of a tough Brexit.


The Bank of Japan kept monetary policy unchanged, but expressed its readiness to take additional stimulus measures in case of deterioration in key economic indicators.


Gold remained in the 1940.00-1967.00 flat yesterday. The 1940.00 level was falsely broken. This is a strong reversal signal within which one can expect the growth of quotations to 1967.00 and 1993.00.


  • Resistance levels: 1967.00, 1993.00, 2030.00.


  • Support levels: 1940.00, 1914.00, 1900.00.


The main scenario - a consolidation in the range of 1940.00-1967.00.


An alternative scenario - a decline below 1940.00 and movement to 1914.00.


The current fundamental outlook is moderately positive. We consider longs with very moderate risks from the level of 1940.00.

Latest news

+$500 for trading

2020-09-29 08:00:46

+$500 FOR TRADING Trade and receive real money for each 10th completed lot USE THE BONUS AND GET THE FOLLOWING BENEFITS: Unlimited withdrawal Compatible with Megaprotect and Deposit Bonus Available for cents and swap-free accounts HOW TO GET BONUS? To have a valid trading account To maintain the minimum account balance of 100 USD Keep trading and receive […]

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 […]