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Gold prices are constrained within a narrow flat

Jan 17 2020, 01:11 PM (+06) | Fortfs.com

Gold prices are constrained within a fairly narrow range due to the backdrop of continuing uncertainty in trade relations between the United States and China. Many investors are skeptical of the trade agreement between the two countries, as the United States did not agree to lift the $ 360 billion trade restrictions previously imposed. Doubts remain that under these conditions, China will conscientiously fulfill all its obligations. The risk of an aggravation of the trade conflict and a worsening situation in the global economy will continue throughout 2020, so the demand for protective assets remains high.

 

Within the economic calendar today, it is worth paying attention to the statistics block from the USA, where data on industrial production, the number of issued permits for the construction of new houses and indexes from the University of Michigan will be published. Data above market expectations may contribute to the local strengthening of the dollar and lower demand for precious metals.

 

Regarding the chart, the flat of 1542.00-1560.00 remains relevant. The priority scenario remains unchanged: growth to the upper bound of the flat.

 

Resistance Levels: 1560.00, 1573.00, 1585.00;

 

Support Levels: 1550.00, 1542.00, 1530.00.

 

The main scenario - an increase towards 1560.00.

 

An alternative scenario - a consolidation below 1550.00 and a decline towards 1542.00.

 

The fundamental background is neutral. Within the daily framework, we give priority to longs. Entry points should still be considered at the level of 1550.00.

 

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