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Gold is approaching the $1800 per ounce level

Jul 1 2020, 02:53 PM (BDT) | Fortfs.com

Gold continues to maintain an upward movement vector, closely approaching the mark of $ 1800 per ounce.

 

Gold completed the second quarter with the maximum increase over the past 4 years. Demand for gold has grown significantly due to uncertainty in the prospects for the development of the global economy and a sharp easing of monetary policy by the Central Banks of many countries.

 

It is noteworthy that in the 2nd quarter gold demonstrated positive dynamics of movement despite the record growth in the US stock market. Many experts believe that such a correlation will not prevent gold from maintaining a bullish trend due to the high uncertainty around the coronavirus pandemic and the long period of low interest rates announced by the Central Banks. Low or negative government bond yields make gold a more attractive investment asset.

 

Today the market expects a fairly saturated news calendar. A large block of economic statistics from Europe and the US is expected to be released. During the European trading session, investors will follow the news from Germany: manufacturing PMI data for June and labor market statistics. Regarding the US, the following releases are expected today: the ADP data on changes in the number of employees in the non-agricultural sector, PMI data from the ISM and the record of the last FOMC meeting will be published. All this news can have a significant impact on the dynamics of the market.

 

The level of 1780.00 has been broken. Now the bulls are trying to gain a foothold above this mark, which paves the way to the next target at 1800.00.

 

Resistance Levels: 1800.00, 1820.00, 1835.00;

 

Support Levels: 1780.00, 1767.00, 1756.00.

 

The main scenario - growth towards the level of 1800.00.

 

An alternative scenario - a breakdown of intraday support at the level of 1780.00 and a decline towards 1767.00.

 

The current fundamental outlook is moderately positive. We would consider longs from the level of 1780.00.

 

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