On Wednesday, gold prices continue to move up amid growing concerns regarding US-China trade negotiations.
Gold quotes grew more than 1% on Tuesday due to the weakening USD pressure (USD index at -0.15%) and Trump’s claims that US-China trade negotiations could continue after 2020. Later, in an interview with CNBC, US Secretary of Commerce, Wilbur Ross, confirmed the “seriousness” of Donald Trump's statements. He noted that Trump does not have a shortage of time, since he has good chances of being re-elected as President. Therefore, the White House will strive to reach a good agreement instead of playing "political games."
In addition, the U.S. House of Representatives approved a bill supporting Uyghur population in China. Many PRC's officials will be sanctioned. This decision may slow down the process of conducting trade negotiations.
Today, in addition to geopolitical news, investors will closely monitor the publication of US national statistics. In particular, the publication of the ADP monthly nonagricultural employment report and ISM tertiary sector PMI is expected.
Locally, an upward trend prevails on the chart. The price has broken and fixed above the level of 1475.00. The next target for buyers is the area of 1485.00 and 1490.00.
Resistance Levels: 1485.00, 1490.00, 1505.00;
Support Levels: 1475.00, 1470.00, 1460.00.
The main scenario is growth towards 1485.00-1490.00.
An alternative scenario is a support breakdown at 1475.00 and a further decline towards 1470.00.
The fundamental setting is positive. Within the daily framework we consider purchases starting from the level of 1475.00.