Despite the growth of Asian stock indices, gold today maintains an upward movement vector, reacting to the FRS decision on unlimited repurchase of government bonds and mortgage-backed securities.
Goldman Sachs analysts note that after the measures taken by the Federal Reserve, they revised their forecast for gold and now expect growth towards $1800.
Another driver of gold growth is the USD dynamics. The dollar index continues to decline (-0.7%) increasing investor interest in traditional defensive assets. All of the aforementioned factors create a favorable environment for restoring the value of gold.
Regarding the economic calendar, today the market will be focused on preliminary PMI data on manufacturing and services in the US and Europe. This data will help evaluate the impact of the coronavirus epidemic on key areas of the economy.
Regarding the chart, bullish signals are locally dominant. Last night, gold overcame an important resistance area formed in the region of the level of 1545.00. Accordingly, the next target for price movement is the level of 1595.00.
Resistance Levels: 1595.00, 1635.00, 1650.00;
Support Levels: 1545.00, 1515.00, 1480.00.
The main scenario - an increase towards 1595.00.
An alternative scenario - a decline towards 1545.00 and further upward movement.
The fundamental outlook is moderately positive. Within the daily framework, we consider longs from the level of 1545.00.