Gold is trading in the green zone today amid a worsening conflict between the US and China. On Tuesday night, the US Senate unanimously passed the Hong Kong Human Rights Bill. The document was sent for further consideration to the House of Representatives. The Chinese Foreign Ministry condemned the attempts of US interference in the internal affairs of China and called the representative of the US Embassy.
Stock indices reacted to these news with a decline. Investors fear the disruption of trade negotiations and the worsening political and economic confrontation between the United States and China. Demand for safe haven assets is growing.
Today, geopolitical news and the situation on stock exchanges will have the strongest effect on the dynamics of gold. During the American trading session, it is worth paying attention to the publication of the minutes of the last FOMC meeting.
On the chart, the price returned to the level of 1470.00, which is a signal to continue the upward movement. The immediate target is the level of 1485.00.
Resistance Levels: 1475.00, 1485.00, 1505.00;
Support Levels: 1461.00, 1450.00, 1440.00.
The main scenario is an increase to 1485.00.
An alternative scenario is a decline to 1461.00.
The fundamental background is positive. Bullish signals prevail on the chart. Inside the day we consider longs from the level of 1472.00.