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Gold trading is bidirectional due to the trade news and the weakening of USD

Dec 13 2019, 01:52 PM (+06) |

Gold is being traded bidirectionally today. News about the possible conclusion of the US-China trade agreement pressure the gold price. Recently Donald Trump stated via Twitter that the parties are close to signing a trade agreement. Some sources report that today the US trade representative Robert Lighthizer and Chinese Ambassador Tsui Tiankai may sign the draft agreement. Within the framework of the agreements reached, the parties will completely cancel the previously introduced duties. China also pledges to purchase US $ 50 billion worth of agricultural products from the United States in 2020.

Stock indices respond to these messages positively, the demand for defensive assets (gold, Japanese yen) is decreasing.

At the same time, USD dynamics provide significant support to the gold prices. Within today’s trading session, the USD index decreased by more than 0.6%, dropping to a minimum point since July of this year. Therefore, despite the news about the possible signing of a trade agreement, gold trading remains to be fairly stable and should remain within the medium-term horizontal range.

Within today's economic calendar it is important to pay attention to the publication of retail sales data in the US for November.

Regarding the chart, the flat 1460.00-1480.00 remains relevant. As part of this consolidation, we can locally expect the development of a downward movement towards the level of 1460.00. If this level gets broken, the next target should be the 1440.00 level.

Resistance Levels: 1468.00, 1480.00, 1490.00;

Support Levels: 1460.00, 1440.00, 1440.00.

The main scenario - a decline towards 1460.00.

An alternative scenario - a breakdown of intraday resistance at 1468.00 and a further increase towards 1480.00.

The fundamental outlook is moderately negative. Within the daily framework, we consider shorts from the level of 1468.00.

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