During the Asian session on Thursday, the price of gold fell after the US and China signed an interim trade agreement. Global stocks hit record highs, while demand for precious metals and other protective assets declined.
However, gold retains an opportunity for recovery, as Beijing and Washington have not been able to resolve all differences on international trade. The United States upheld the previously imposed duties on Chinese goods worth about 360 billion dollars. Many analysts also point out that the interim agreement does not address some of the structural economic problems that led to the conflict between the two parties. The agreement may be terminated or revised at any time if the United States considers that China is unscrupulously fulfilling its obligations. The trade war is not over yet, so many investors will hedge their risks via gold and other safety assets.
In addition to geopolitical news today, investors will closely monitor the publication of data on retail sales and indices from the Federal Reserve Bank of Philadelphia. Recently, the United States has published weaker macro statistics, which puts pressure on the dollar and the yield on US government bonds.
A correctional wave continues to develop on the chart. The main goal at the level of 1560.00 has not yet been achieved, so today we are waiting for further growth of quotations for this goal.
Resistance Levels: 1560.00, 1573.00, 1585.00;
Support Levels: 1550.00, 1542.00, 1530.00.
The main scenario - a correction towards 1550.00 and an increase to 1560.00.
An alternative scenario - a consolidation below 1550.00 and a decline to 1542.00.
The fundamental background is moderately negative. Within the daily framework we consider longs from the level of 1550.00