Yellow metal finished the first day of the new trading week with a slight decline, amid the ongoing rally of the American dollar. USD dollar produced a series of eight days of non-stoppable rally. High demand for US currency is emerging from risk-off sentiment amid concerns related to the further growth of the global economy. On the background of market uncertainty, USD dollar strengthened its status as the main safe-haven currency, amid higher demand for US bonds.
High market uncertainty is now largely linked to the expectations of a new round of US-China trade negotiations. White House statements last week significantly reduced market confidence that the parties would soon be able to sort out all the contradictions and conclude a agreement. On Monday, a delegation of negotiators from the United States arrived in Beijing, and according to the information of the Ministry of Commerce of China, a new round is due to take place from February 14 to 15.
On the chart, the market situation has not changed for last session. We see gold trying to recover from yesterday’s decline. The market managed to consolidate above the 1307 mark, now it is a local support level.
§ Resistance levels: 1314.00, 1320.00, 1325.00;
§ Levels of support: 1310.00, 1306.00, 1300.00.