During the Asian trading session on Monday, gold remained in the red zone due to the publication of positive data from China on the growth of profits of manufacturing companies.
According to the NBS, in August, profits of manufacturing companies in China increased by 19.1%, compared with the same period last year. A month earlier, this figure was 19.6%. The profit of manufacturing companies is growing for the 4th month in a row, but following the results of 8 months of operation in 2020, a loss of 4.4% was recorded.
Positive news from China supported stock indices and weakened investor interest in defensive assets.
The market will also focus on the upcoming debate between Trump and Biden, which is scheduled for Tuesday, and the news of negotiations between Republicans and Democrats on the formation of a new economic aid package. House Speaker Nancy Pelosi said the parties could reach a compromise on the issue, noting that negotiations are ongoing.
In the economic calendar today it is worth paying attention to the speech of the head of the ECB Christine Lagarde.
The chart is dominated by bearish signals. Bears are increasing pressure on the level of 1853.00. We are expecting a breakout of this mark and a development of a downward movement.
The main scenario - a breakdown of support at the level of 1853.00.
An alternative scenario - consolidation in the range of 1853.00-1875.00.
The current fundamental outlook is neutral. We consider selling above the level of 1875.00.
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