Fundamental analytics

Gold has renewed its 11-day low


Gold hit an 11-day low in Asia on Friday. US employment data released Thursday supported the dollar and bond yields with which the precious metal is closely correlated. Also, pressure on the precious metal is exerted by increased expectations of a decrease in the volume of stimulus measures in the United States.

Investors are now awaiting additional labor market data to be released later in the day. These data may provide additional information about the economic outlook and the next steps of the Fed to implement monetary policy. The latest statements from FRS representatives indicate that there is no consensus among the management regarding the further implementation of the asset repurchase program.

New York Fed President John Williams said Thursday that the US economic recovery after COVID-19 is not strong enough for the Fed to start cutting stimulus measures, but added that it makes sense to start talking about stimulus cuts.

On the chart, the price has broken through the lower border of the ascending channel. This is a strong reversal signal within which we can see a change in the medium-term trend. Locally, we are waiting for the formation of a rollback movement in the direction of the level of 1885.00 and the resumption of the downward movement.

An interesting area for purchases today is located at the level of 1865.00.

Sell ​​entry points should be considered in the area of ​​the 1885.00 level.

· Resistance levels: 1885.00,1914.00, 1920.00.

· Support levels: 1865.00, 1860.00, 1834.00.

The main scenario is an increase to 1885.00 and a downward reversal.

An alternative scenario is a breakdown of the support at 1865.00 and a decline in the direction of 1834.00.

The current fundamental background is neutral.

Trading recommendations: we are considering sell signals in the area of ​​the level of 1885.00.