Gold and other defensive assets are gradually regaining their positions after Donald Trump's rather harsh remarks about China. The US president threatened a substantial increase in tariffs on Chinese goods if the parties could not conclude a trade agreement. Also, Trump called the Chinese nation “scammers” and accused of manipulating WTO rules. Amid increasing US trade pressure on China, major stock indexes moved into the red trading zone. In this case, gold is traditionally regarded as the main defensive asset.
Today, gold will be influenced only by geopolitical news and the situation on the stock market. Investors are awaiting the publication of a report on inflation in the United States and the speech of Fed Chairman Jerome Powell.
On the chart, we note a false breakdown of the level of 1450.00 and a fairly good upward price rebound. This can be considered as a local signal for starting of the correctional movement, the immediate target for which is the level of 1470.00.
Resistance Levels: 1470.00, 1485.00, 1505.00;
Support Levels: 1450.00, 1440.00, 1430.00.
The main scenario is a decline to 1453.00 and an increase to 1470.00.
An alternative scenario is an increase to 1470.00 from current levels.
A positive news background locally prevails on the market. Inside the day we consider longs from the level of 1453.00.