Gold continues to consolidate in a narrow range due to the fact that divergent factors balance each other.
News on the spread of coronavirus and its impact on the global economy still provides support for gold. Today, the Governor of California announced a state of emergency. The state has confirmed 53 cases of the disease and more than 9,400 people being under the supervision of doctors.
Pressure on gold is exerted by the American dollar and news from the US on the introduction of new measures to stabilize the economy. The day before, the US Congress approved the allocation of an additional $ 8.3 billion to fight the Covid-19 virus. The American currency was also positively affected by news about the strong results of Joe Biden in the intra-party elections on Tuesday.
Today in the US economic calendar there is no important news, so the situation on the stock exchanges and geopolitical news will influence trading.
Bidding takes place in a very narrow range, located just below the level of 1647.00. While the price remains below this mark, the scenario with the development of a downward movement in the direction of the level of 1625.00 remains a priority.
Resistance Levels: 1647.00, 1660.00, 1680.00;
Support Levels: 1625.00, 1605.00, 1575.00.
The main scenario - a decline towards 1625.00.
An alternative scenario - a breakdown of resistance at the level of 1647.00 and an increase towards 1660.00.
The fundamental outlook is neutral. We consider shorts from the level of 1647.00.