Fundamental analytics

Gold remains under pressure


Gold finished trading on Monday with a decrease of more than 0.4%. Pressure on the yellow metal is still exerted by news on the course of trade negotiations between the US and China, and the US dollar (the dollar index yesterday gained 0.1%).

Despite the rather controversial media reports, investors are still awaiting the signing of an interim trade agreement between the US and China this year. Today it became known about telephone conversations between Vice Premier Liu He, US Trade Representative Robert Lighthizer and US Secretary of the Treasury Stephen Mnuchin. According to the Ministry of Commerce of China, the parties agreed to continue discussions on issues that impede the conclusion of an interim foreign trade agreement.

In addition to geopolitical news, traders today will follow the publication of data on new home sales in the US in October and the CB consumer confidence index.

On the chart, a downward wave continues to develop in the medium term. Local correctional pullback from the level of 1450.00, most likely, does not have great prospects. From the level of 1459.00, we can expect the resumption of the downward movement and the breakdown of support at 1450.00.

Resistance Levels: 1459.00, 1465.00, 1475.00;

Support Levels: 1450.00, 1433.00, 1410.00.

The main scenario is an increase to 1459.00 and the resumption of the downward movement.

An alternative scenario is a breakdown of resistance at 1459.00 and an increase to 1465.00.

The fundamental background is moderately negative. The chart is still dominated by bearish signals. We consider shorts from the level of 1459.00


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