By the end of the Asian session gold has slightly decreased amid reports that the United States extended the temporary license for Huawei until April 1. The previous license expired on February 16th. Investors perceive these steps as a signal to de-escalate the trade conflict. Earlier this month, Chinese authorities decided to halve a large list of goods from the United States.
With the beginning of the European trading session, gold resumed its upward movement. Interest in gold and other protective assets is supported by news about the spread of the deadly coronavirus, called Covid-19. Today, information was released about the first death from a virus in Japan. Around the world, 64,437 people are infected with the virus, of which 63,855 in China. The number of lethalities is 1,383.
In the economic calendar, the central event of today will be the publication of data on US retail sales for January.
When making trading decisions, it is worth considering the fact that a long weekend is expected in the United States. On Monday, financial markets in the United States will be closed to mark the celebration of Presidents Day.
Regarding the chart, price is still held in a very narrow range. As a priority, we are still considering the option with the growth of quotations towards the level of 1585.00.
Levels of resistance: 1585.00, 1600.00, 1611.00;
Support Levels: 1563.00, 1550.00, 1542.00.
The main scenario - an increase towards 1585.00.
An alternative scenario - a decline towards 1563.00.
The fundamental outlook is neutral. There are no good signals for entry on the chart now, so we recommend that you refrain from trading this instrument today.