During the Asian trading session, gold is moving almost horizontally around the level of 1223.97. Key resistance level is Murrey 7/8 or 1230.47.
In the long term, the downward trend maintains but the Fed Meeting Minutes support the instrument. The head of the committee, Jerome Powell, said that monetary tightening would depend on economic indicators, and the rates reached the neutral level. Many experts connect the unexpectedly restrained statements of the Fed's governor with criticism by Donald Trump, who considers the actions of the Central Bank premature. In addition, it is possible that additional time will be needed to assess the impact of the rates raised this year on the economy.
Today the G20 summit begins, at which the meeting of the leaders of China and the United States is expected, where they will discuss the protectionist policy. If countries fail to agree, gold will act as a shelter asset. However, just a correction of the price can be seen, as the trend can change only after the price consolidation above the level of 1300.00.
Support and resistance
Stochastic is at the level of 27 points and does not give signals for opening positions.
Resistance levels: 1230.47, 1232.50.
Support levels: 1220.00, 1218.75.
Short positions can be opened from the level of 1230.47 with the target at 1220.00 and stop loss 1232.50.
|Support levels||1218.75, 1220.00, 1230.47, 1232.50|
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