Gold opens trading on Monday with a slight decrease amid rising major stock indexes and lowering tensions in international trade. The ASEAN Summit was held over the weekend in Thailand. Participating countries supported the initiative of China to create a regional trade agreement between 16 countries of the Asia-Pacific region. Now the parties are close to signing the final agreement. In addition 10 countries in Southeast Asia, such as China, India, Japan, South Korea, Australia and New Zealand must sign the agreement.
A short meeting of the leaders of South Korea and Japan was also held at the ASEAN summit, at which the parties agreed to hold high-level talks to resolve the aggravated political and trade problems between the two countries.
Investors also reacted positively to statements by U.S. Secretary of Commerce Wilbur Ross that official Washington might not impose a 25 percent duty on European cars and spare parts in case of positive completion of negotiations this week. According to Bloomberg, the final decision on this issue will be made until November 14.
Against the background of the prevalence of positive news, the demand for safe assets is declining, which contributes to the development of a pullback movement in gold.
On the chart, trading is still in the range of 1505.00-1515.00. As part of this outlook, we can locally expect a decline in quotations to the lower end of the range. It is worth counting on continuing the upward movement with the target at 1530.00 only after the price has fixed above 1515.00.
Resistance Levels: 1515.00, 1530.00, 1540.00;
Support Levels: 1505.00, 1480.00, 1475.00.
The main scenario is a decline to 1505.00.
An alternative scenario - consolidation above 1515.00 and medium-term growth to 1530.00
Locally, the market is dominated by a moderately negative news background. On the chart, the price bounced down from resistance at 1515.00. Near this level, short-term shorts can be considered.