Fundamental analytics

GOLD: the first speeches at the G20 summit supported the demand for defensive assets


On Thursday, gold was trading in a very narrow price range, amid a lack of important news on the market that could give a more directional impulse to price movement.

Today, at the Asian trading session, gold showed a fairly steady growth of more than 0.5%, in response to events occurring at the G20 summit. Despite the rather peace-loving tone of Donald Trump's statements, his colleagues from Japan, India and the PRC criticized US protectionist policies, which have a negative impact on the development of the entire global economy. Speculation that Trump can react quite sharply to widespread criticism was supported by the demand for defensive assets. Donald Trump has repeatedly surprised everyone with his extraordinary and unpredictable decisions, so before the meeting between the leaders of China and the United States, investors refuse to take risks.

Obviously, in the coming days, the news of the G20 summit will have the strongest impact on financial markets, but economic statistics may also have a certain impact on trading. In the EU, today we are publishing preliminary data on the consumer price index, which in a couple of EUR / USD may have an impact on the dollar. In the US, you should pay attention to the report on the costs of personal consumption of individuals and indices of the University of Michigan.

On the chart, gold retains good opportunities for recovery to annual maximums, around the level of 1436.00, since yesterday buyers managed to defend support at 1403.00. The level was falsely pierced, which is a good reversal gain.

Resistance Levels: 1423.00, 1436.00, 1442.00;

Support levels: 1415.00, 1403.00, 1383.00.

The main scenario - rollback to around 1403.00 and the resumption of upward movement.

An alternative scenario - consolidation above 1415.00 and an increase to 1436.00.

A moderately positive news background prevails locally on the market, which contributes to the development of an upward movement, therefore, within the day, we give preference to long positions that are to be found near the level 1403.00.

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