On Wednesday, gold was trading in a fairly narrow price range, remaining under pressure from the dollar and receiving support from the current situation on the stock markets. Major US and European indices closed yesterday’s trading in different directions, generally showing minimal deviations relative to the opening price. Most investors do not expect much progress in trade negotiations after the meeting between Donald Trump and Xi Jinping, so they still buy defensive assets.
The US dollar, despite another batch of unconvincing statistics from the US, continues to hold its position in the market, thanks to more optimistic comments by the Fed representatives who sounded earlier this week. For gold, this is a serious deterrent that limits the ability to restore quotes. In addition to the dollar, the positive dynamics of the movement is also maintained by the yield of the American treasury.
Today, the focus of investors will be the data of the final estimate of US GDP for the 1st quarter. Experts predict a figure at the level of the previous assessment - 3.1%.
On the chart, the price continues to consolidate slightly above support at 1403.00. This is a negative signal for buyers, significantly increasing the likelihood of a breakdown of this mark and further development of the bearish wave in the direction of 1383.00.
Resistance Levels: 1413.00, 1423.00, 1436.00;
The levels of support: 1403.00, 1493.00, 1383.00.
The main scenario is the breakdown of support at 1403.00 and a decline to 1383.00.
The alternative scenario is a false breakout of the level of 1403.00 and an increase to 1436.00.
The market as a whole maintains a neutral news background, but bearish signals prevail on the chart. Therefore, within the day we give preference to shorts, which should be considered at the level of 1413.00.