Current trend
Since the opening of Asian trading session, gold is trading in a red zone. Now it is trading at the level of 1345.60, the key support level is 1340.62.
According to experts, the uncertainty upon the Syrian question between USA and Russia is still relevant and is supporting the precious metal. The second stimulating factor is the China-USA trade war, as the protectionist policy is developing. Worth noting, Iranian authorities abandoned USD in favor of EUR to process international transactions, which can affect the dollar negatively.
Analysts suggest that central banks will continue to accumulate the precious metal on accounts. According to IMF, by 2023 US government debt can reach around 117% of the GDP due to the tax reformation. Gold is a shelter asset during the economic shocks, which allows diversifying risks. It can reach the level of 2K per troy ounce, as now it is underpriced.
Support and resistance
Resistance levels: 1350.00, 1355.25.
Support levels: 1340.62, 1335.94.
Trading tips
Long positions can be opened at the level of 1340.62 with the target at 1350.00 and stop loss 1335.94.
Scenario
Timeframe Intraday
Recommendation BUY LIMIT
Entry Point 1340.62
Take Profit 1350.00
Stop Loss 1335.94
Key Levels 1335.94, 1340.62, 1350.00, 1355.25
Since the opening of Asian trading session, gold is trading in a red zone. Now it is trading at the level of 1345.60, the key support level is 1340.62.
According to experts, the uncertainty upon the Syrian question between USA and Russia is still relevant and is supporting the precious metal. The second stimulating factor is the China-USA trade war, as the protectionist policy is developing. Worth noting, Iranian authorities abandoned USD in favor of EUR to process international transactions, which can affect the dollar negatively.
Analysts suggest that central banks will continue to accumulate the precious metal on accounts. According to IMF, by 2023 US government debt can reach around 117% of the GDP due to the tax reformation. Gold is a shelter asset during the economic shocks, which allows diversifying risks. It can reach the level of 2K per troy ounce, as now it is underpriced.
Support and resistance
Resistance levels: 1350.00, 1355.25.
Support levels: 1340.62, 1335.94.
Trading tips
Long positions can be opened at the level of 1340.62 with the target at 1350.00 and stop loss 1335.94.
Scenario
Timeframe Intraday
Recommendation BUY LIMIT
Entry Point 1340.62
Take Profit 1350.00
Stop Loss 1335.94
Key Levels 1335.94, 1340.62, 1350.00, 1355.25