On Thursday, there were no significant changes on the gold market. Gold quotes traded within new tight market range with limits 1277-1285. Yesterday gold quotes, having pushed off from the mark 1285, dropped to the support area 1277, where the bulls again moved to counterattack. However, officially gold lost in price about 0.35%, amid a decline in demand for risk-free assets and a strengthening USD dollar.
Yesterday on a volatile session American dollar was able to gain by more than 0.55%, due to the strong weakening of other G7 currencies, firstly Euro and Australia dollar. USD dollar closed the day above 95 points which is a strong yechnical level. European currency and the Australian dollar lost in price more than 0.7% on Thursday, providing great support to the US dollar.
But the negative factor for gold market was the globally positive equity session as good sentiment prevailed everywhere, European and Asian indices closed the day in the green. However, American market did not show a clear movement dynamics and closed mixed. Now the positive statements from US and China on the trade negotiations form optimistic sentiment throughout the market. Economic US economic advisor once again stated that Trump is very optimistic about the negotiations with China. Now the market is growing confidence that the parties will be able to reach an agreement before March 1. Increased investor interest in high-yield risky assets is a negative driver for safe-have assets such as gold.
Today USD dollar index is adjusting somewhat providing support for gold market. The last day of trading week, we will look into statistics from US- data on new home sales and durable goods orders.
On the chart despite the bearish daily close, we see a good chance for the gold to resume the growth. Bulls managed to hold the price above $1277 and return the quotes above $1280. Today the market is likely to test the first support $1285. Have a nice trading day ahead!