Gold maintains a downward movement trend and has decreased below $ 1,500 on Tuesday. Gold is falling despite the strongest drop in the US stock market and unprecedented measures taken by the world Central Banks to stabilize the market situation in more than three decades. Many experts note that now the market is in a state of panic. In these conditions, investors even sell traditional defensive assets. US stock markets experienced another sharp wave of sales, in which stocks showed a double-digit decline. Investors have lost confidence in the ability of the government and central banks to deal with the economic consequences of the spread of coronavirus. Some experts say that the world Central Banks have already exhausted the entire stock of measures that could be used to stabilize the situation in the economy.
Later today, telephone negotiations of G7 finance ministers are due to take place, at which, perhaps, a coordinated program of action will be developed to stabilize the global economy.
Also today, investors will follow the publication of US retail sales data for February.
Regarding the chart, bearish signals prevail locally. As part of the corrective movement, the bulls could not gain a foothold above the level of 1510.00. The downward movement is resumed. During the day, you can expect a support retest at the level of 1455.00.
Resistance Levels: 1510.00, 1540.00, 1563.00;
Support Levels: 1455.00, 1440.00, 14105.00.
The main scenario is - decline towards 1455.00.
An alternative scenario - a breakdown of resistance at the level of 1510.00 and an increase towards 1540.00.
The fundamental outlook is neutral. We consider shorts from the level of 1510.00