Gold closed trading on Thursday with a decline of 0.6% amid a stronger dollar. Support for the US currency was provided by stronger than expected data on the index of industrial activity from the Federal Reserve Bank of Philadelphia and good statistics on sales in the secondary housing market.
Today, yellow metal is trying to restore previously lost positions. Since the beginning of the day, quotes have grown by 0.2%. The main support factor remains the uncertainty surrounding US-China trade negotiations. Investors are cautious, fearing a breakdown in negotiations, and are more actively buying traditional defensive assets.
Today, the central event of the day may be the performance of Christine Lagarde. Investors expect signals from the new head of the ECB about further plans regarding monetary policy and assessment of the current state of the region’s economy. Also, investors will closely monitor the news in the field of international trade.
On the chart, trades are still held in the horizontal range 1465.00-1475.00. Yesterday, the bears failed to gain a foothold below the level of 1465.00, so today we can expect the development of an upward movement to the upper border of the range.
Resistance Levels: 1475.00, 1485.00, 1505.00;
Support Levels: 1465.00, 1450.00, 1440.00.
The main scenario is an increase to 1475.00.
An alternative scenario is a breakdown of support at 1465.00 and a decline to 1450.00.
The fundamental background is moderately positive. The horizontal channel 1465.00-1475.00 is still relevant on the chart. Inside the day, we consider longs from the level of 1465.00.