Gold price slightly decreased due to a recovery in global stock indices. Investors are still focused on the spread of the deadly strain of coronavirus. According to the latest information, new cases of infection were recorded in 15 countries all over the world, including Germany, France, USA, Canada, South Korea and others. In total, the number of confirmed virus infections is approaching 4.5 thousand people, of which about a thousand are in serious condition. The number of deaths is 107.
Due to such circumstances, the demand for gold and other protective assets remains stable, but USD remains a serious deterrent to metals. The USD index has increased to a five-week high. Gold is denominated in USD currency, so it becomes more expensive for many investors.
Today, investors should pay close attention to the CCI data publication and information on the number of orders for durable goods.
Yesterday, the bulls could not overcome the resistance at the level of 1585.00, therefore, the scenario with the development of a moderate downward movement in the direction of the level of 1571.00 remains a short-term priority.
Resistance Levels: 1585.00, 1600.00, 1611.00;
Support Levels: 1571.00, 1550.00, 1542.00.
The main scenario - a decline towards 1571.00.
An alternative scenario - a breakdown of resistance at the level of 1585.00 and an increase in the direction of 1600.00.
The fundamental outlook is neutral. Locally, we consider shorts from the level of 1585.00.