Fundamental analytics

Gold is going to update the annual highs


On Thursday, gold finished trading with a confident growth, more than 0.7%, and the quotes again reached the maximum values ​​of the year. Investors are actively buying gold as a protective asset against the background of high uncertainty about the prospects for the development of the global economy and exacerbation of geopolitical risks.

Yesterday there was an armed attack on two oil tankers in the Gulf of Oman. The United States accused Iran of an attack, and now investors fear an escalation of the conflict between the two countries, since this is not the first attack on tankers in recent months.

Another risk factor is the trade conflict between the United States and China. Trump threatens China with 25% of all Chinese import duties, while more than 600 Americans sent an open letter to the president on Thursday calling for an end to the trade war from which American companies and consumers are the first to suffer. In the letter, they called on Trump to conclude an agreement with China at the next meeting of the parties, which is likely to take place on the G20 summit.

A certain deterrent for gold remains the US dollar, whose index is trading in the green zone, but amid rising expectations of easing monetary policy in the US, the yellow metal has very good opportunities to continue the bullish trend.

Today, the focus of the market will be data on industrial production from China and statistics on retail sales from the United States.

On the chart, the price not only reached the previously noted target at the level of 1343.00, but without any problems broke through this mark. This signal is a good bullish signal, which makes the area 1355.00-1360.00 the next target for price movement.

Resistance Levels: 1350.00, 1355.00, 1360.00;

Support levels: 1335.00, 1325.00, 1318.00.

The main scenario - growth in the direction of the level of 1355.00.

An alternative scenario - a decline under 1343.00 and a correction to 1335.00.

There are still a lot of support factors for gold on the market, but the fact that the price is now in the area of ​​annual highs can make adjustments to the further course of trading, so buying should be considered only after the rolling back movement forms, to the area of ​​1335.00.


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