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Gold prices recover after a heavy Friday decline

Dec 9 2019, 01:48 PM (+06) | Fortfs.com

On Monday, gold prices are at a slight increase after a strong decline of more than 1% at the Friday trading session. Quotes growth occurs within the framework of a technical correction.

Gold quotes are moderately supported by the risks associated with the possible introduction of new US trade duties on Chinese imports from the 15th of December. The White House administration has not yet made a final decision on this issue.

Pressure on the price continues to be exerted by the strong data on the US labor market, which contributed to the strengthening of USD and the  consequential decline of gold prices during the Friday trading session. A strong report on the labor market reduces the likelihood of a soft FRS narrative following a two-day FOMC meeting this week. The market expects interest rates to remain at the same levels.

Due to the absence of major news within the economic calendar today, geopolitical news and the overall situation in the market will influence trading the most.

Regarding the chart, the local support for quotes is provided on the level of 1460.00. Starting from that level, we are expecting a development of correctional movement to the level of 1468.00, after which the downward movement can be resumed.

Resistance Levels: 1468.00, 1473.00, 1480.00;

Support Levels: 1460.00, 1455.00, 1450.00.

The main scenario - a correction towards the level of 1468.00 and the continuation of the downward movement.

An alternative scenario - a decline towards the level of 1455.00 from the current levels.

The fundamental outlook is moderately negative. The chart is dominated by bearish signals. We consider sales starting from the level of 1468.00.

 

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