Fundamental analytics

Gold prices are stable despite the first phase of the Sino-American trade negotiations completion

XAUUSD

 

Gold prices remain in a wide horizontal channel, despite the first phase of the Sino-American trade negotiations completion. Apparently, the market is concerned about the parties' compliance with the terms of this agreement, as well as the further development of foreign trade negotiations between Beijing and Washington.

 

Recently, the news broke that two representatives of the Chinese Embassy were deported from the United States due to suspected espionage. It's been reported that they have entered the territory of a military facility in Virginia in September this year. According to Washington, Beijing is carrying out increasingly aggressive intelligence operations in the United States. These events suggest that tensions between the two countries remain very high, despite the mutual attempts to resolve trade disputes.

 

The USD prices remain around 5-month lows which can be considered an important support factor for gold prices. Since earlier today, the USD index has dipped by almost 0.15%.

 

The economic calendar today will focus on PMI data for the industrial and service sectors in the EU and USA.

 

Regarding the chart, despite the local increase in volatility, the horizontal channel 1460.00-1483.00 remains relevant. As part of the flat, a bullish wave is currently developing towards the target level of 1483.00.

 

Resistance Levels: 1483.00, 1490.00, 1505.00;

 

Support Levels: 1460.00, 1455.00, 1450.00.

 

The main scenario - an increase towards 1483.00 and further downward movement.

 

An alternative scenario - a breakdown of resistance at the level of 1483.00 and a further increase towards 1490.00.

 

The fundamental outlook remains neutral. Within the daily framework, we consider shorts from the level of 1483.00.

 

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