On Wednesday gold is at a moderate decline amid a recovery in the Asian stock market.
Stock indices are rising due to news from the US, where the Senate and the Trump administration reached a preliminary agreement on a bill to further stimulate the economy in the amount of about 2 trillion dollars. This package will protect the US economy from the worst effects of the coronavirus pandemic. It is expected that the leader of the Republican majority in the Senate, Mitch McConell and the leader of the Democratic faction, Chuck Schumer, will officially announce the achievement of an agreement in the near future.
Despite a local decline, many experts note that gold retains good opportunities for further recovery. The main driver of growth will be the US dollar and the FRS decision on an unlimited scale of the asset buyback program.
Today, in the economic calendar, we should pay attention to the publication of data on orders for durable goods in the US for February. Most likely, the impact of this event on the market will be moderate.
Regarding the chart, the price tested resistance at the level of 1635.00. Now a retreat movement is developing from this level, the most likely goal for which is the mark of 1595.00. From this level, we can expect the growth of quotations in the direction of the level of 1680.00.
Resistance Levels: 1635.00, 1680.00, 1700.00;
Support Levels: 1595.00, 1545.00, 1515.00.
The main scenario - a decline towards 1595.00 and further upward movement.
An alternative scenario - a breakdown of support at the level of 1595.00 and a decline towards 1545.00.
The fundamental outlook is moderately positive. Within the daily framework, we consider longs from the level of 1595.00.