Gold prices rose on Friday, finishing the trading week with an increase of almost 1%. The main driver for the growth of quotations remains the Fed signals about a possible interest rate cut at the next FOMC meeting, which is likely to lead to a weakening dollar and lower yields on US debt securities.
Today, the focus of investors is statistics from China. According to the information provided, China's GDP growth continues to slow, in the 2nd quarter, compared with the same period last year, the figure rose by 6.2%. This is the lowest growth in the last 27 years. The continuation of the negative trend somewhat increases investors' concerns about the development prospects of the largest economy in the world, but most investors still positively assessed the statistics block published today, since the data on investments in fixed assets were higher than the forecast values (5.8%, forecast 5.6%) and industrial production (fact 6.3%, forecast 5.2%). Therefore, in the Asian trading session, gold was trading in the red zone, amid a decline in investor interest in defensive assets.
Today there are no more important news in the economic calendar, so the main influence on the future course of trading will be exerted by the situation on stock exchanges and the dynamics of the dollar.
The chart maintains a wide range trading, with borders at the levels of 1383.00-1438.00. In the central part of the outset, near the level of 1405.00, there is an intermediate level of support, which continues to keep the price at the top of the range. Therefore, the priority is still the growth of quotations to 1425.00 and 1438.00.
Resistance Levels: 1425.00, 1438.00, 1445.00;
Support levels: 1405.00, 1383.00, 1360.00.
The main scenario - growth to 1425.00.
An alternative scenario - the breakdown of support at 1405.00 and a decline to 1383.00.
The market as a whole maintains a moderately positive news background, therefore, as part of the broad range, preference is still given to longs, which should be considered from the level of 1405.00.