Fundamental analytics

Gold declines after the publication of FOMC protocols

Gold

Gold on Thursday is trading at a 0.2% decline. Pressure on precious metals was exerted by the FOMC protocols, which indicate that Fed officials will take a break in the cycle of lowering interest rates. This decision limits the potential for depreciation of the dollar and the profitability of US government bonds.

Nevertheless, today gold retains good opportunities for the resumption of upward movement, due to the current situation on the stock exchanges. World indices are still in the red trading zone. Investors negatively perceived a new portion of criticism from Donald Trump against China. The American president made it clear that he did not intend to sign an interim agreement with China. The media, referring to informed sources, report that the parties cannot agree on the issue of canceling previously introduced duties. China wants proportional cancellation, the United States believes that China should cancel more duties. The probability of signing an interim agreement in 2019 tends to zero. On December 15, the White House may introduce new 15 percent duties on Chinese goods.

In addition to geopolitical news, today it is worth paying attention to the publication of the minutes of the ECB meeting, indexes from the Federal Reserve Bank of Philadelphia and statistics on home sales in the US secondary market.

On the chart, trading is still in the range of 1465.00-1475.00. Еhe scenario with the price going up from the sideways, with the target at 1485.00 remains priority. 

Resistance Levels: 1475.00, 1485.00, 1505.00;

Support Levels: 1465.00, 1450.00, 1440.00.

The main scenario is a breakdown of resistance at 1475.00 and an increase to 1485.00.

An alternative scenario is a breakdown of support at 1465.00 and a decline to 1450.00

The fundamental background is moderately positive. There are no good signals locally on the chart to enter the market. Inside the day, you can consider longs at the level of 1465.00, in case of bullish signals at lower time intervals.

 

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