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Gold starts the trading week at a new all-time maximum

Aug 3 2020, 03:05 PM (BDT) | Fortfs.com

Gold starts the new trading week at a historic high, continuing to move towards the important psychological mark of $ 2000 per ounce.

 

The growth drivers have not changed: the COVID-19 pandemic, low interest rates of the FRS and other central banks, weakening USD, and growing geopolitical risks.

 

Over the weekend, White House officials reiterated possible sanctions against Chinese companies. The main focus now is on the TikTok company. Trump announced a possible ban on the company in the United States due to threats to national security. But this morning, Reuters released information that Donald Trump intends to give ByteDance, which owns the TikTok service, 45 days to negotiate the sale of Microsoft.

 

Investors are seriously concerned about the fact that the United States has not yet adopted a new program to stimulate the economy. On Saturday, lawmakers were unable to agree on the parameters of a new stimulus program, negotiations should continue this week. Senate Minority Leader Chuck Schumer said Saturday's talks were productive but far from over. Recall that the previous incentive program expired in July.

 

Regarding the economic calendar today, it is worth paying attention to the publication of PMI data for manufacturing sectors in the EU and the US. Experts predict growth in indicators, which could increase investor risk appetite and weaken demand for gold and other defensive assets.

 

A strong bullish trend continues to dominate the chart. Buyers are increasing upward pressure on the 1981.00 level. We are expecting a breakdown of this mark and further growth of quotations towards the level of 2000.00.

 

Resistance levels: 1981.00, 2000.00;

 

Support levels: 1966.00, 1945.00, 1921.00.

 

The main scenario - a breakdown of resistance at 1981.00 and growth in the direction of 2000.00.

 

An alternative scenario - a decline to 1966.00 from current levels.

 

The current fundamental outlook is positive. We would consider longs in the area of ​​the level of 1966.00.

 

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