Gold on Monday is trading near the seven-week high set on Friday. Demand for gold remains strong due to the declining US Treasury yields. The dynamics of the dollar's movement has a restraining effect on gold today. The dollar index is holding in the green trading zone.
Additional support for gold and other defensive assets is provided by concerns about the spread of COVID-19 and problems with vaccinations in many regions of the world. In some regions, new strains of the virus are recorded, which continues to mutate. Many countries continue to step up restrictive measures. So over the weekend, Hong Kong banned all flights from India, Pakistan and the Philippines after reports of the first two cases of the mutated N501Y COVID-19 strain.
Physical demand for gold remains uneven. The demand for gold in India has reportedly decreased due to the increased cost and restrictions associated with COVID-19. At the same time, China is gradually increasing its imports of gold bars, which may indicate a possible increase in demand in the short term.
Other metals are trading in different directions today. Silver prices dropped by almost 1%. Platinum and palladium were up by 0.33% and 0.37%, respectively.
There is no important news in the economic calendar today. We monitor investor sentiment on stock markets and dynamics on the debt securities market.
The upward movement continues to develop on the chart. If buyers hold the price above the intraday support at 1774.00 today, the price could rise around 1800.00.
The main scenario is growth in the direction of 1800.00.
Alternative scenario - consolidation below 1774.00 and decline to 1760.00.
The current fundamental background is moderately positive. We consider longs from the levels of 1774.00 and 1760.00.
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