Forex Brokers Award 2021
Vote your favourite broker

Gold is constrained below $1,700

May 7 2020, 01:31 PM (BDT) |

On Thursday, gold is in the green zone amid a worsening relationship between Beijing and Washington and the publication of mixed statistics from China.


On Wednesday evening, US Secretary of State Mike Pompeo accused China of creating the COVID-19 virus. Pompeo also stated that China has not taken the necessary measures to prevent the spread of the virus outside the country. Later, answering journalists' questions, Donald Trump called into question the further implementation of the trade agreement with China. He noted that the United States has not yet assessed the degree to which China has fulfilled its obligations. This may take 1-2 weeks.


Statistics from China came out contradictory. Investors were pleasantly surprised by export data. The indicator unexpectedly increased by 3.5%, against the forecast of -15.7%. But import data turned out to be worse than expected, the actual drop of -14.2% was 3% higher than the forecast of 11.2%. Data on the PMI of the service industry came out to be worse than market expectations. The indicator for the month increased from 43.0 to 44.4 points, with a forecast of 51.0 points. A value below 50 indicates a decrease of activity in this area.


The economic calendar today will focus on the weekly data on applications for unemployment benefits in the United States.


Regarding the chart, bearish signals are growing. The bulls could not keep the price above the level of 1695.00. Having fixed below this mark, bears can continue to move down, with a target at the level of 1670.00.


Resistance Levels: 1695.00, 1708.00, 1722.00;


Support Levels: 1670.00, 1645.00, 1610.00.


The main scenario - a decline towards the level of 1670.00.


An alternative scenario - a consolidation above the level of 1695.00 and growth towards 1722.00.


The current fundamental outlook is neutral. We consider shorts from the level of 1708.00.

Fort Financial Services - a licensed international Forex broker. A wide range of trading opportunities: more than 500 tradable contracts, Fort, Flex, Pro and Newbie accounts, direct access to world exchanges, diverse trading platforms: MetaTrader4, CQG Trader, Ninja Trader, Binary Options, partnership programs, free analytics and much more.