Fundamental analytics

Gold: bullish signals prevail


On Tuesday, gold stopped its growth and traded in different directions, in a rather limited price channel.

The development of trading in the range was largely due to the situation on the stock markets, where the major indices were trading in the green zone, indicating investor risk appetite.

The central event of the day for financial markets was the speech of Fed Chairman Jerome Powell, who, like other FOMC members, hinted at the possibility of lowering interest rates in the United States to maintain high economic growth. Powell noted that the regulator is very closely monitoring the situation in international trade and is ready for adjustments in monetary policy, if necessary. For gold, this is a positive signal, as monetary policy easing will put pressure on the dollar, in which the precious metal is nominated.

Today, the World Bank for the second time this year revised its forecasts for the growth rate of the world economy and trade. The bank's specialists noted a sharp slowdown in the growth rate against the background of the worsening situation in the sphere of trade. The forecast for world GDP growth has been lowered from 2.9% to 2.6%, and the growth rate of world trade from 3.6% to 2.6%.

Data on PMI services in China from Caixin can put pressure on financial markets today. According to the information provided, activity in this sector of the economy slowed sharply in May. The actual figure was 52.7 points against 54.4 a month earlier.

Also today, investors will closely monitor employment data from ADP and PMI from the non-US manufacturing sector from ISM.

In general, it can be said that the overall fundamental background for gold remains positive and is likely to further increase the value of the yellow metal.

On the chart, after a fierce intraday struggle for the level of 1325.00, the price resumed its upward movement, showing that buyers won in this confrontation. Accordingly, in the near future we can expect further development of the upward movement in the direction of the level of 1332.00.

Resistance Levels: 1332.00, 1343.00, 1350.00;

Support levels: 1325.00, 1318.00, 1310.00.

The main scenario - growth to 1332.00

Alternative scenario - correction to the area of ​​1322.00 and resumption of the upward movement.

The fundamental background for this tool remains positive. On the chart, bullish signals still dominate. Intra-day preference is given to purchases that should be looked for at levels 1322.00 and 1325.00.



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