Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market

Gold is under pressure amid declining geopolitical risks

Sep 9 2019, 02:03 PM (BDT) |

Gold finished trading on Friday in the area of ​​two-week lows, despite the publication of weak statistics on the US labor market. The report data indicate a slowdown in the growth in the number of new jobs, which may indicate a worsening situation in the labor market in the future. Many experts believe that the Fed has a reason for further easing monetary policy. According to CME Group, the probability of a rate cut of 25 bp in September is 92%. Speaking in Zurich on Friday, Jerome Powell noted that he did not yet see signs of a recession in the US economy, but did not refute the general market expectations about another reduction in interest rates.

In medium-term this is a positive signal for gold, but do not forget that the yellow metal is strongly influenced not only by economic, but also by geopolitical news. Tensions between the United States and China last week decreased slightly. The political situation in the UK and Hong Kong has improved. This leads to a decrease in the demand for protective assets and contributes to a decrease in the cost of gold.

Today in the economic calendar there is no important news that could have a strong impact on the dynamics of gold, so investors will focus on the news of geopolitics and the situation on stock exchanges.

On the chart, we note an unsuccessful attempt by buyers to overcome resistance at the level of 1523.00. The price rebounded quite strongly, indicating a local priority in the direction of the correctional movement to the levels of 1493.00 and 1485.00.

Resistance Levels: 1535.00, 1547.00, 1555.00;

Support Levels: 1505.00, 1493.00, 1485.00.

The main scenario is a decline to 1493.00.

An alternative scenario is a breakdown of resistance at 1523.00 and an increase to 1547.00.

A neutral fundamental background has now been established in the market, but signals prevail on the chart for further development of the correctional movement. Short-term preference is given to shorts, which should be considered in the region of the level of 1523.00.

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.