On Thursday at the Asian trading session, gold showed rather volatile trading amid conflicting media reports. Demand for gold and other defensive assets rose sharply after reports from South China Morning about the early departure of the Chinese delegation from negotiations in Washington. According to the publication, during preliminary working meetings the parties failed to achieve significant progress. This information was later refuted by CNBC and reaffirmed at Fox News.
Stock indexes were able to quickly recover their previously lost positions, and gold returned to its original trading levels against the backdrop of the New York Times about the possibility of concluding a currency agreement between the US and China and information circulated by Bloomberg, about the possible relaxation of restrictions for US companies to supply certain types of goods to the corporation Huawei.
The topic of trade negotiations between the United States and China has an increasingly strong influence on the dynamics of the market. Therefore, in the coming days we should expect an increase in volatility and uncertainty.
In addition to geopolitical news, today it is worth paying attention to the publication of a report on inflation in the United States.
On the chart, we note an unsuccessful attempt of the bulls to gain a foothold above resistance at 1510.00. Locally, this can be regarded as a reversal signal in the direction of the formation of a downward movement in the direction of the level of 1485.00.
Resistance Levels: 1510.00, 1525.00, 1533.00;
Support Levels: 1500.00, 1485.00, 1475.00.
The main scenario is a decline to 1485.00.
An alternative scenario is a breakdown of resistance at 1510.00 and an increase to 1525.00.
A mixed news background has been formed on the market. On the chart, bearish signals prevail locally. Inside the day we give preference to shorts, which should be considered in the range of 1510.00-1515.00.