Forex Brokers Award 2021
Vote your favourite broker

Gold is still constrained in a flat channel

Sep 21 2020, 02:56 PM (BDT) |

Gold on Monday is moving in different directions, remaining in a limited trading range. Investors are expecting a speech by the head of the Fed, Jerome Powell, before the US Congress. Other Fed officials are also expected to give statements this week: Charles Evans, Raphael Bostic, Lael Brainard, James Bullard, Mary Daley and John Williams.


Jerome Powell will try to convince US lawmakers to strengthen stimulus measures in the face of the coronavirus pandemic and a slowdown in economic recovery. In the long term, the buildup of stimulus measures may increase the pressure on the dollar, which is traditionally a good support factor for gold.


Investors are also waiting for more information from Powell and other representatives of the Federal Reserve on further plans for the implementation of monetary policy in relation to the implementation of a new approach to targeting average inflation.

Stimulating demand for gold and other protective assets are reports of an increase in the number of people infected with COVID-19 in Europe. Over the weekend, Denmark and Greece introduced new quarantine measures. The German health minister said he was worried about the spread of the virus in France, Austria, the Netherlands and Germany. New quarantine measures could put pressure on the EU economy again in the second half of the year.


In the economic calendar today, it is worth paying attention to the speeches of the head of the ECB Christine Lagarde and the head of the Fed Jerome Powell.


The flat channel of 1940.00-1967.00 remains relevant on the chart. Today we are waiting for the continuation of consolidation in this price channel.


· Resistance levels: 1967.00, 1993.00, 2030.00.


· Support levels: 1940.00, 1914.00, 1900.00.


The main scenario - a consolidation in the range of 1940.00-1967.00.


An alternative scenario - a decline below 1940.00 and a move to 1914.00.


The current fundamental outlook is moderately positive. We consider longs with very moderate risks near the 1940.00 level.

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.