The price of gold continues to decline amid growing pressure from the dollar and the emergence of positive news regarding trade negotiations between the US and China.
According to the South China Morning Post, a delegation from Washington is due to fly to Beijing next week to resume trade negotiations. It is reported that the US delegation will be headed by Robert Lighthizer and the US Treasury Department Stephen Mnuchin. The Chinese side will be represented by Vice Premier of the State Council of the People's Republic of China Liu He.
Just yesterday, Donald Trump held a meeting with the leaders of major American technology companies (Qualcomm, Intel, Google, etc.), at which they discussed issues of interaction with the Chinese telecommunications giant Huawei.
These reports significantly reduced investor interest in defensive assets, especially against the backdrop of rising gold prices, which are denominated in US currency.
Today the US is expected to publish data on sales in the secondary housing market. But, most likely, geopolitics news and the situation in stock markets will have a stronger impact on trading.
This morning, the price pushed through the intermediate support level of 1418.00, which is a signal of the continuation of the corrective movement in the direction of a stronger support level - 1405.00, where one can expect the formation of a reversal in the direction of the main trend.
Resistance Levels: 1427.00, 1438.00, 1450.00;
Support levels: 1405.00, 1383.00, 1332.00.
The main scenario - a decline to 1405.00 and the resumption of movement up.
An alternative scenario - the breakdown of support at 1405.00 and a decline to 1383.00.
Negative news background dominates the market locally, so buying this tool should be considered only at the level 1405.00.