Gold trading is mixed due to a generally mixed market mood. Risks associated with the coronavirus pandemic remain one of the main support factors. According to WHO, the number of cases in the world has exceeded 13 million. The virus continues to spread, threatening the global economic recovery.
The growing tensions between the United States and China are supporting a stable high demand for risk-free assets. The United States has imposed visa restrictions on employees of Chinese technology companies, including Huawei. Also, the White House is considering the possibility of blocking Chinese applications TikTok, WeChat, etc. and a ban on entry of officials of the Chinese Communist Party and their families.
The pressure on the precious metal today is exerted by the US dollar and positive statistics from China.
The dollar index has strengthened by 0.1% since the beginning of the day. Investors are responding to rising tensions between the US and China. The dollar remains the main beneficiary of this conflict.
China today released a large block of economic statistics. The underlying data was better than market expectations. Annual GDP growth in the 2nd quarter was 3.2%, while experts had expected the indicator to grow by only 2.5%. Industrial production increased by 4.8%, against the forecast of + 4.7%. The volume of investments in fixed assets decreased by 3.1% against the forecast of -3.3%. Only retail sales indicators were lower than expected. Their volume unexpectedly decreased by 1.8%, while the projected growth rate of 0.3%.
Today, market participants will focus on the ECB meeting and the publication of the report on retail sales in the United States.
There were no significant changes on the chart within the last 24 hours. The price is still in the middle of a wide flat trend of 1793.00-1820.00. As part of the flat, locally we are expecting a moderate downward movement and resumption of upward movement with a breakdown of the upper border.
Resistance Levels: 1820.00, 1830.00, 1850.00;
Support Levels: 1793.00, 1774.00, 1760.00.
The main scenario - a decline to 1796.00 and an increase to 1820.00.
An alternative scenario - growth to 1820.00 from the current levels.
The current fundamental outlook is neutral. We would consider longs from the level of 1796.00.