Gold at the start of the new week is trading in the green zone amid increased investor interest in defensive assets prior to the US presidential election. It is noteworthy that gold remains in positive territory despite the growth of the dollar, with which gold has an inverse correlation, and the positive dynamics of the movement of stock indices, which react to the strong PMI data of the manufacturing sector in China.
Uncertainty over the US presidential election and the ever-expanding threat of the COVID-19 pandemic are pushing gold up as investors hedge ever-increasing risks.
Many experts note that this year the presidential elections in the United States are being held in a very serious struggle and the election results may be challenged by one of the candidates. This further increases the uncertainty in the market.
Investors continue to follow the news about the spread of the coronavirus in Europe. Following Spain, France and Germany, the authorities of Great Britain, Italy and Portugal resorted to tightening quarantine measures. The number of new cases of coronavirus in Europe has doubled in the past few weeks, holding back the economic recovery from the pandemic.
In the economic calendar today it is worth paying attention to the publication of data on PMI of the manufacturing sector from Europe and similar data on the USA from ISM.
Buyers turned the price up. Today we are waiting for the development of a moderate upward movement with the nearest target at around 1893.00. In the medium term, we can expect the growth of quotations to 1910.00 and above.
The main scenario - growth to 1893.00.
Alternative scenario - a breakdown of support at 1875.00 and retest of the level of 1867.00
The current fundamental outlook is moderately positive. We consider longs from the level of 1875.00
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