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Negative news on the course of trade negotiations between the US and China again increased demand for gold

Sep 23 2019, 02:59 PM (+06) |

Gold finished Friday trading with a fairly steady growth amid reports that the Chinese delegation left Washington earlier than planned. Later, Donald Trump noted that to conclude a comprehensive trade agreement, increasing the volume of purchases of agricultural products from the United States is not enough. The parties need to resolve a number of other important issues without which a trade agreement cannot be concluded.

Hopes for the imminent signing of a trade agreement between the United States and China were again dispelled, and many investors began to actively buy gold, trying to diversify their risks.

Today, the precious metal retains a bullish momentum. Recent news of problems in trade negotiations between the US and China, as well as the US and Japan, point to a further deterioration in international trade.

Later, investors will be focused on preliminary PMI data on manufacturing and services sectors in the US and Europe. Weaker indicators may increase investor interest in gold amid a slowdown in economic activity in key regions of the world.

On the chart, trading continues in the horizontal channel 1485.00-1523.00. Now, a bullish wave is developing within the sideways. In case of breakdown of the level of 1523.00, we can expect further growth of quotations in the direction of annual maximums, in the region of the level of 1555.00.

Resistance Levels: 1523.00, 1545.00, 1555.00;

Support Levels: 1500.00, 1485.00, 14550.00.

The main scenario is an increase in the direction of the level of 1523.00 and an attempt to gain a foothold above this mark.

An alternative scenario is a decline in quotes from current levels to around 1500.00.

The fundamental background remains moderately positive. Bullish signals prevail locally on the chart. We give short-term preference to longs that should be considered near the level of 1500.00.

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