Gold price remains in the green zone on Tuesday amid declining Asian indices. This is how investors are responding to Apple's reports of declining production and weak sales in China due to the coronavirus epidemic.
In addition, the market is gradually shifting its focus from news about the spread of coronavirus to reports of trade confrontation between the United States and China.
Today, China has provided a list of 696 US products (pork, beef, soy, liquefied natural gas, crude oil, etc.) for which trade duties can be reduced for a period of one year. At the same time, the Bloomberg agency reported that the Trump administration is preparing new restrictive measures for the export of new technologies to China.
There is no important news in the economic calendar today, therefore, the situation on the stock exchanges and geopolitical news will have the main impact on trading. So far, the market is dominated by positive signals that support gold and other protective assets.
The graph continues to reflect upward movement. Now we see buyers trying to gain a foothold above the level of 1585.00. If they succeed, the next target for price movement will be the level of 1600.00.
Resistance Levels: 1585.00, 1600.00, 1611.00;
Support Levels: 1575.00, 1563.00, 1550.00.
The main scenario - a correction towards 1575.00 and an increase towards 1600.00.
An alternative scenario - an increase towards 1600.00 from the current levels.
The fundamental outlook is moderately positive. Within the daily framework, we give priority to longs. Entry points should be considered around the level of 1575.00.