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Gold is restored on the news of the possible postponement of the signing of a foreign trade agreement between the US and China

Nov 7 2019, 03:12 PM (BDT) | Fortfs.com

Gold completed trading on Wednesday in the green zone, + 0.6%, having won back some of the positions lost at the beginning of the trading week. The quotes were restored by the dynamics of the main stock indices. The Reuters report on the possible postponement to December the signing of a foreign trade agreement between the United States and China had a negative impact on investor sentiment. The demand for defensive assets has grown, since any postponement of the date of signing may indicate that there are certain disagreements between the positions of official Beijing and Washington, which may ultimately lead to the breakdown of all previous agreements.

Today, the news on the course of trade negotiations between the USA and China will continue to have the strongest influence on the dynamics of financial markets, since there are no important events in the economic calendar. Amid a decrease in risk appetite, gold retains good opportunities for further recovery.

On the chart, the price tested the resistance level of 1494.00 noted yesterday. We did not see a strong rebound. On the contrary, buyers increase upward pressure on this mark, therefore, the scenario with the further development of the upward movement in the direction of the level of 1505.00 is a priority today.

Resistance Levels: 1494.00, 1505.00, 1515.00;

Support Levels: 1480.00, 1475.00, 1460.00.

The main scenario is a breakdown of resistance at 1494.00 and an increase in the direction of 1505.00.

An alternative scenario is a decline to 1475.00.

Today a moderately positive fundamental background has been formed. There are signals on the chart in the direction of further development of the upward movement. Inside the day we consider longs with very moderate risks from the level of 1491.00.

 

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