Gold completed trading on Wednesday above the $ 1,500 mark. Now quotes continue to be held above this level while maintaining good opportunities for continued growth.
High demand for precious metals is observed amid growing concerns about the prospects for the development of the global economy. Weak economic statistics from the United States put pressure on key stock indexes, the US dollar and the yield on US government bonds. These factors are always strong drivers for the growth of the value of gold.
Investors are also worried about the worsening situation in international trade. With WTO permission, the United States will impose duties on a number of EU agricultural and industrial products from October 18, which could lead to a deterioration in relations between Washington and Brussels. Experts do not rule out a response from the EU.
Today, in addition to geopolitical news, it is worth paying attention to the publication of data on the PMI of the services sector and the non-manufacturing sector from the USA. Weaker data can significantly increase investor interest in gold and other defensive assets.
On the chart, the price overcame resistance at 1485.00 and continued to rise. From current levels, we can expect the development of corrective movement to retest 1485.00. After that, the upward movement can be resumed. The targets are the levels of 1510.00 and 1525.00.
Resistance Levels: 1510.00, 1525.00, 1555.00;
Support Levels: 1494.00, 1485.00, 1475.00.
The main scenario is a correction to 1485.00 and the resumption of upward movement.
An alternative scenario is the development of upward movement from current levels.
The fundamental background remains positive. Bullish signals prevail on the chart. Inside the day we consider longs from near the level of 1485.00.