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

Gold price falls amid declining geopolitical tensions

Jan 10 2020, 12:54 PM (+06) | Fortfs.com

On Friday, the price of gold continues to fall amid the declining geopolitical tensions. The US and Iran have significantly softened the tone of their statements, abandoning military threats against each other. A positive impact on the stock exchanges was made by official statements of the United States and China. The parties stated that they intend to sign an interim foreign trade agreement next week on the 15th of January.

 

The day before, Donald Trump noted that in the near future the United States and China will begin the second phase of negotiations, but most likely, it will be completed after the US presidential election, which will be held this fall.

 

Stock markets react to this news very positively. On Thursday, Dow, S&P,  and Nasdaq closed at record highs. Today, the bullish momentum is maintained by the Asian and European indices. Obviously, considering these circumstances, gold, as a protective asset, is losing its investment value and the price keeps declining.

 

In addition to geopolitical news, the US Department of Labor monthly report will be in the spotlight today. A stronger report may strengthen the dollar’s position in the market, which will contribute to the further development of the downward movement of gold.

 

A downward wave continues to develop on the chart. Locally, support for the quotes is provided by the level of 1542.00, but today we can expect a breakdown of this level and further development of the downward movement in the direction of the level of 1530.00.

 

Resistance Levels: 1560.00, 1573.00, 1585.00;

 

Support Levels: 1542.00, 1530.00, 1515.00.

 

The main scenario - a breakdown of support at the level of 1542.00 and a decline towards 1530.00.

 

An alternative scenario - a consolidation above 1560.00 and further growth towards 1573.00.

 

The fundamental outlook is negative. Bearish signals prevail on the chart, so within the daily framework we consider shorts from the level of 1560.00.

 

Fortfs.com

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.
ad