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Gold struggles to get back to $1500

Mar 23 2020, 02:17 PM (BDT) |

Gold prices experience a moderate growth due to the weakening dollar.


Representatives of the Democratic Party in the US Senate blocked the bill on a package of anti-crisis measures aimed at combating the economic consequences of the coronavirus pandemic. They could not reach a consensus with the Republicans on the provision of assistance to the corporate sector and employees. Now the White House is actively negotiating with representatives of both parties to agree on all the contentious issues of the bill. Legislators are expected to re-vote on this document today.


Considering the above, many investors are again considering gold as the main defensive asset in a recession of the global economy.


Another support factor for gold was the situation on the Asian stock markets, where the main indexes continued to fall. Investors remain concerned about the COVID-19 pandemic.


There is no important news in the economic calendar today, therefore the situation on the stock exchanges and the debt securities market will have a key impact on the dynamics of gold.


Regarding the chart, a local horizontal range of 1480.00-1500.00 currently constrains trading. The further movement vector will determine the flat exit price direction. We prioritize the scenario with a breakdown of the level of 1500.00 and a further increase towards 1515.00.


Resistance Levels: 1500.00, 1515.00, 1545.00;


Support Levels: 1480.00, 1455.00, 1440.00.


The main scenario - a breakdown of resistance at the level of 1500.00 and an increase towards 1515.00.


An alternative scenario - a breakdown of support at the level of 1480.00 and a decline towards 1455.00.


The fundamental outlook is moderately positive. Within the daily framework, we consider longs around the level of 1480.00.

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