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Gold remains above $1,700

May 29 2020, 01:32 PM (BDT) |

Gold trading is mixed today. The investors’ focus is on the stock exchanges. The market froze in anticipation of a press conference by Donald Trump on the situation in Hong Kong.


On Thursday, the Chinese parliament approved a bill on national security in Hong Kong and Macau. U.S. President Donald Trump, who promised a tough response, stated that he would hold a press conference regarding China later on Friday.


Experts believe that the possible US response can range from breaking the intermediate trade agreement and new increased duties on Chinese imports to milder measures, such as travel restrictions or financial sanctions against Chinese officials and organizations involved in the adoption and implementation of this law. Trump may revoke Hong Kong special privileges.


Further dynamics of gold will depend on the way USD and the market will react to today's speech by D. Trump.


It is also worth paying attention to the speech by the head of the FRS Jerome Powell, but the reaction of the market to this event is likely to be restrained due to the expectations of D. Trump’s press conference.


Regarding the chart, buyers have not yet been able to overcome the resistance at 1725.00. Accordingly, as a priority, we still consider the scenario with a decline in quotations in the direction of the level of 1695.00.


Resistance Levels: 1725.00, 1735.00, 1750.00;


Support Levels: 1695.00, 1670.00, 1645.00.


The main scenario - a decline towards 1695.00.


An alternative scenario - a breakdown of resistance at the level of 1725.00 and an increase towards 1735.00.


The current fundamental outlook is neutral. We consider shorts near the level of 1725.00.

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