flag-gb flag-my flag-zh flag-id flag-th flag-vi

Problems in trade negotiations between Beijing and Washington increase investor’s interest in gold


Gold finished yesterday's trading with an increase of more than 1% against the background of the weakening dollar and the appearance of negative information about the course of trade negotiations between the United States and China.

Information agencies have spread the information that trade negotiations between the United States and China have actually halted, since Washington cannot yet decide on Beijing’s demands to ease restrictive measures against Huawei. Accordingly, China refuses to take on any obligations until clarity is introduced with respect to this company. It is also reported that after the meeting of the leaders of the two countries at the G20 summit, the representatives of the parties have not held any personal meeting, and so far are limited to telephone conversations, which can hardly lead to significant progress in the negotiation process.

These reports had a significant pressure on stock indices, most of which ended yesterday’s trading with a minus, which is always accompanied by an increased demand for defensive assets such as gold and the Japanese yen.

Today, the market situation has not changed significantly. Gold is still trading in the green zone, while the dollar index in the Asian trading session sank by almost 0.15%. Obviously, news related to international trade and the situation in the stock market will again have the strongest influence on trading.

US today is expected to publish the indices from the Federal Reserve Bank of Philadelphia and the speeches of the FOMC members Williams and Bostic.

On the graph, despite the strong intraday growth, the situation has not changed significantly. Medium term range trading remains in the channel 1383.00-1438.00. Now, from the intermediate support level at 1405.00 a local bull wave is developing, the main objective for which is the upper limit of the outset - 1438.00.

Resistance Levels: 1426.00, 1438.00, 1445.00;

The levels of support: 1420.00, 1405.00, 1383.00.

The main scenario is the breakthrough the resistance at 1426.00 and an increase to 1438.00.

Alternative scenario - fixing below 1420.00 and correction to 1405.00

The market is dominated by a positive news background, which contributes to the further development of the upward movement, therefore, within the day, we give preference to longs that should be considered at the level of 1420.00.

Latest news

Welcome Bonus $75

2019-06-25 06:49:53

Welcome Bonus $75 returns, for 10 days only! Experiment with market trading without depositing. Trade indices, Forex, precious metals, futures, stocks – full range of instruments on one account!

Spreads on popular contracts reduced!

2019-06-13 16:17:20

Starting from 06 June 2019, FortFS reduces spreads for 4 most popular contracts! From 06 June until 19 July 2019, the 4 most popular contracts spreads will be: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 Good Luck! Fort Financial Services – Citadel of trading