During the Asian trading session, gold slightly decreased, despite continued economic uncertainty and the risks associated with the spread of the coronavirus pandemic. USD exerts pressure on gold. The USD index has grown by 0.6% since the beginning of the day.
Nevertheless, the medium-term market remains fundamentally positive for gold. The coronavirus pandemic continues to negatively impact the global economy. Today, S&P downgraded the outlook for Australia's rating from "stable" to "negative." Recent polls by Reuters predict a deep recession in Japan's economy this year. And the extreme forecast of the Federal Reserve Bank of St. Louis suggests an increase in US unemployment to 32%. Obviously, until the end of the coronavirus pandemic, investor interest in gold will remain high.
In the economic calendar today we can highlight the publication of the last FOMC meeting clip. The dominant effect on trading will be provided by the situation on stock exchanges and the dynamics of the movement of the dollar index.
Regarding the chart, the price retests the level of 1645.00. While the bulls hold this level, the scenario with the development of the upward movement in the direction of the level of 1680.00 remains a priority.
Resistance Levels: 1680.00, 1700.00, 1720.00;
Support Levels: 1645.00, 1610.00, 1585.00.
The main scenario - an increase towards 1680.00.
An alternative scenario - a breakdown of support at the level of 1645.00 and a decline towards 1610.00.
The fundamental outlook is moderately positive. We give preference to longs, which can be considered at the level of 1645.00.