Gold on Monday is located in the green zone. Investors are still actively buying gold amid worsening epidemiological situation in the US and other countries.
According to the World Health Organization (WHO), on July 12, a global historic maximum increase in the number of COVID-19 cases was recorded - 230,370 people were infected in 24 hours. Most investors are concerned about the situation in the United States, where the infection continues to spread at a record pace. A new wave of the pandemic could slow the pace of US economic recovery or lead to a new recession.
A high level of demand for protective assets is further solidified by high geopolitical uncertainty. At the end of last week, Donald Trump stated that in the near future a trade agreement with China will not be concluded as part of the second phase of negotiations. Investors are now expecting Beijing’s official reaction to these statements, although Trump’s statements are unlikely to be a big surprise. Earlier, many experts were almost unanimous in their statements that the second phase of trade negotiations would begin only after the end of the US presidential election.
There is no important news in the economic calendar today, so the main influence on gold will be exerted by geopolitical news and investor sentiment on stock exchanges.
Regarding the chart, a support level of 1793.00 was tested and price resumed upward movement. In the coming days, we are expecting a moderate upward movement with the immediate goal at the level of 1820.00.
Resistance Levels: 1820.00, 1830.00, 1850.00;
Support Levels: 1793.00, 1774.00, 1760.00.
The main scenario - growth towards the level of 1820.00.
An alternative scenario - a decline from current levels to 1793.00.
The current fundamental outlook is moderately positive. We would consider longs near the level of 1793.00.