On Tuesday gold is trading in different directions, holding in a fairly narrow range. Investors are refraining from taking serious steps awaiting the debate of the US presidential candidates. The debate is scheduled to start on Wednesday 01:00 GMT.
Investors will also follow the US Senate consideration of a new bill on the allocation of 2.2 trillion dollars to support the economy. On Monday, the new plan was published by representatives of the Democratic Party. The project includes the restoration of additional unemployment benefits of $ 600 per week and a number of other activities. House Speaker Nancy Pelosi called the plan a compromise, but did not specify when the bill would be voted on.
Despite growing political and economic uncertainty, demand for gold and other defensive assets has dropped significantly in recent weeks. JPMorgan experts believe that these assets have ceased to fulfill their traditional functions due to the soft monetary policy implemented by many Central Banks. But the bank's experts still recommend hedging their positions in gold and other defensive assets to secure their capital from a possible collapse of the stock market.
In the economic calendar today it is worth paying attention to the publication of the consumer confidence index from The Conference Board for September. Experts predict an increase in the indicator from 84.2 to 89.2 points.
Bulls were able to overcome the resistance at 1875.00 yesterday. This is a good signal in favor of further development of a moderate upward movement towards the 1903.00 level.
The main scenario - a decline to 1866.00 and an increase in the direction of 1903.00.
An alternative scenario - growth to 1903.00 from the current levels.
The current fundamental outlook is neutral. We consider longs from the level of 1865.00.
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