During the Asian trading session, the price of gold rose by more than 0.85% on the weakening of pressure from the USD. At the same time, gold now has a direct correlation with the major stock indices, which are trading in the green zone.
Investors are closely following the domestic political struggle in the United States. Earlier this week, Donald Trump announced the suspension of negotiations on the formation of a new stimulus package, but it became known on Thursday that the Democratic Party and the White House resumed discussions on the new bill. Most experts remain of the opinion that the parties will not be able to conclude an agreement until the presidential elections on November 3.
One of the drivers of the growth in gold prices could be statements by the World Gold Council (an organization created in 1987 by the largest gold producers in the world). According to their information, for 9 months of this year, exchange-traded funds have increased their gold reserves by 1000 tons, to the amount of over $ 60 billion. These data show the growing demand for physical gold, which is one of the catalysts for strong growth of prices in 2020. The WGC mentioned in a statement that central banks around the world sold more gold than they bought in August, which was one of the reasons for the halt in the soaring price of gold. Thus, the Central Banks completed the cycle of monthly gold accumulation, which lasted 1.5 years.
Today, there is no important news in the economic calendar, therefore, the main impact on trading will be provided by the situation on stock markets, fluctuations in the dollar exchange rate and news of geopolitics.
The bulls were able to break the resistance at 1898.00. This is a good signal in favor of further development of an upward movement with the target at 1920.00.
The main scenario - a pullback to 1898.00 and an increase to 1920.00.
An alternative scenario - a breakdown of support at 1898.00 and a pullback to 1884.00.
The current fundamental outlook is neutral. We consider longs from the levels of 1898.00 and 1884.00.
+$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 […]
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 […]