Gold continues trading with a moderate increase amid worsening geopolitical and economic situation in the world and growing demand for protective assets.
The focus of investors remains on the trade conflict between the US and China. On the eve, The Wall Street Journal reported problems in trade negotiations due to disagreements on the purchase of agricultural products. Traders reacted to the statements of the leaders of the two countries. After Trump's harsh comments on China, Xi Jinping recalled the threat of protectionist policies for the development of the entire global economy.
The worsening situation in international trade has a negative impact on the growth rates of key economies in the world. According to statistics released today, industrial production in China has slowed from 5.8% to 4.7%, while investment in fixed assets has declined from 5.4% to 5.2%. Weak economic indicators were published by Japan. Due to the deteriorating situation in international trade and the decline in exports, Japan's GDP growth rate in the 3rd quarter slowed down from 1.8% to 0.2%.
Today, the market will again follow the news on the progress of US-Chinese trade negotiations. A certain effect on the pricing may have a new speech by Fed Chairman Jerome Powell to the relevant committee of the US Congress.
On the chart, from the level of 1450.00, the bullish correctional wave continues to develop. The main goal is still the level of 1470.00. You can count on a stronger growth of quotes after the breakdown of this level. In this case, we can expect the quotes to recover by 1485.00.
Resistance Levels: 1470.00, 1485.00, 1505.00;
Support Levels: 1460.00, 1450.00, 1440.00.
The main scenario is an increase to 1470.00 and a pullback down.
An alternative scenario is a breakdown of resistance at 1470.00 and an increase in towards 1485.00.
A moderately positive news background remains on the market. Bullish signals prevail locally on the chart. Inside the day, we recommend long positions from the level of 1460.00.