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Gold drops after strong growth on Thursday

During Friday trading session the price of gold is down by 0.4%. Investors continue to follow the news from the United States, where the counting of votes for the presidential election continues.

 

The leader of the race remains the representative of the Democratic Party, Joe Biden, but he has not yet secured a 100% victory, as the vote count continues in a number of states. The likelihood remains high that the losing candidate will challenge the election results in court. Trump's headquarters have already tried to suspend the counting of votes in two states, but the claims were dismissed by the court. So far, both candidates declare their confident victory.

 

Biden has so far secured the support of 264 electoral votes, out of 270 needed to win. Trump has 214 votes. Pennsylvania, Georgia, Nevada and North Carolina are still counting votes at this time. Trump's headquarters are already making legal claims against the counting of votes in Nevada, Pennsylvania, Georgia and Michigan, as well as demanding a recount in Wisconsin.

 

Trump also questioned the integrity of the election, saying, “If you count the legitimate votes, I can easily win. If you count the illegal votes, they might try to steal our victory."

 

Following the FOMC meeting yesterday, the regulator left the main parameters of monetary policy unchanged, but Jerome Powell hinted at a possible expansion of the asset buyback program in the future. He also noted that the difficult epidemiological situation worsens the prospects for economic development.

 

Labor market data will be published in the US today. We are waiting for the traditional growth of volatility.

 

Yesterday gold broke through the important resistance level of 1930.00. This is a strong bid by the bulls to continue the upward movement with targets at 1967.00 and 1993.00 levels. From the current positions, we are waiting for a rollback to 1930.00 from where the upward movement can be resumed.

 

  • Resistance levels: 1950.00, 1967.00, 1993.00.

 

  • Support levels: 1930.00, 1910.00, 1888.00.

 

The main scenario - a pullback to 1930.00 and an increase in the direction of 1967.00.

An alternative scenario - a breakdown of support at 193000 and a decline in the direction of 1910.00.

 

The current fundamental outlook is moderately positive. Longs are still viable. We look for entry points in the area of ​​the 1930.00 level.

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