On Monday morning in Asia, gold fell to its lowest level in 1.5 months due to the strengthening of the dollar, but very quickly won back losses and is now trading with a rise of 0.45%.
On Monday, the market has seen increased demand for traditional defensive assets due to growing concerns about the prospects for the development of the global economy in the context of the pandemic. The number of people infected with COVID-19 continues to grow in the world. Against this background, many investors have taken a wait-and-see attitude and prefer gold and other safe assets.
The US dollar continues to exert a restraining influence on gold, the index of which has strengthened since the beginning of the day by 0.05%. The dollar is also viewed by many investors as a defensive asset.
Today, there is no important news in the economic calendar, therefore, the main influence on the trading will be provided by the mood of investors on stock markets and the dynamics of the movement of American Treasuries.
In the middle of the week, news from the United States will be in the spotlight. On Tuesday, a speech is expected by former Fed Chairman Janet Yellen, who is running for the post of US Treasury Secretary. She will address the Senate tomorrow.
Joe Biden's inauguration ceremony is due on Wednesday. Tensions remain in Washington after the storming of the Capitol. Security measures have been strengthened in the city.
A strong upward movement is developing locally on the chart after testing support at 1810.00. We are waiting for the continuation of the bullish wave with the target at the level of 1862.00.
· Resistance levels: 1862.00, 1890.00, 1915.00.
· Support levels: 1824.00, 1810.00, 1780.00.
The main scenario is an increase to 1862.00 after a pullback to 1818.00.
An alternative scenario is growth to 1862.00 from the current levels.
The current fundamental outlook is neutral. We consider longs on a pullback to 1818.00.
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