Gold retreats from the level of $ 1700
During the Asian session, the price of gold fell slightly amid a strengthening of the dollar index (+ 0.3%). At the beginning of the European trading session, buyers were able to recoup all the losses. Concerns remain in the market regarding the prospects for the development of the global economy. The risks are heightened amid calls by the US, UK and Australia to conduct an in-depth investigation into China's role in the outbreak of the coronavirus pandemic. A new geopolitical conflict between the leading countries of the world may worsen the prospects for the development of the global economy.
The number of coronavirus patients continues to grow steadily. More than 5.4 million infected have been recorded in the world. The United States remains the leader with 760 thousand confirmed cases of infection. Amid the spread of the pandemic, investors expect a deterioration in the prospects for the development of the global economy, despite the fact that some countries have announced the easing of quarantine measures.
Today, the economic calendar does not have important statistical reports; therefore, the USD and the situation on stock exchanges will project a key influence on the gold dynamics.
Regarding the chart, bearish signals prevail locally. The bulls could not keep the price above the level of 1685.00. The next support level is around 1645.00. A scenario with a decline in quotes today is a priority. It is possible to expect further upward movement only after the price has fixed above the level of 1685.00.
Resistance Levels: 1685.00, 1710.00, 1740.00;
Support Levels: 1645.00, 1610.00, 1585.00.
The main scenario - a decline towards the level of 1645.00.
An alternative scenario - a breakdown of resistance at the level of 1685.00 and an increase towards 1710.00.
The current fundamental outlook is neutral. Bearish signals prevail on the chart, so within the day, we consider shorts. Possible entry points include the levels of 1685.00 and 1710.00.