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Gold is falling under the USD pressure

Gold is trading slightly lower on Monday due to a USD rally, as there is a tight inverse correlation between the instruments.

The recovery of the American currency is taking place due to the decline of its main competitors. Due to the worsening epidemiological situation in Europe, investors are increasing their short positions in the euro. Interest in buying the British currency is falling due to the statements of one of the representatives of the Bank of England that this year may require additional easing of monetary policy. Commodity currencies are also under pressure on Monday due to lower oil prices. Considering the above, investors prefer the traditional protective currencies - the Japanese yen, the US dollar and the Swiss franc.

Among the positive news for gold one can only note the negative dynamics of the movement of the yield of American Treasuries. The yield on 10-year bonds today dropped from 1.669% to 1.643%.

There is no important news in the economic calendar today, therefore the main attention of the market will be focused on the news of geopolitics and the situation on the debt securities market.

Other metals are trading mixed today. Silver is down by 0.9%. Platinum rose by 0.3%. Palladium is down by 0.3%.

The price is still constrained in the flat 1722.70 -1753.50, but there are prerequisites on the chart for the price to exit the flat downward. We see the bears pushing the price against the support at 1722.70. The pressure on the level is increasing, so in the near future we can expect a breakdown of this level.

  • Resistance levels: 1753.50, 1760.00, 1810.00.
  • Support levels: 1722.70, 1700.00, 1680.00.

The main scenario is a breakdown of support at 1722.70.

Alternative scenario - growth in the direction of the level of 1753.50.

The current fundamental background is moderately negative. We consider shorts from the level of 1731.00 with very moderate risks

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