Gold quotes, which retreated to global support at 1700.0 as a result of a strong jerk in the USD Index, are correcting upward, trading at 1712.0 at the moment.
A short-term impetus to the precious metals market was given by statistics from China. Thus, the February consumer price index accelerated the growth rate to 0.6%, which exceeded the expectations of analysts who had expected an increase of 0.4%. The producer price index added 1.7%, with an expected increase of 1.5%.
A longer-term positive driver for gold is expected US inflation. Already, its level has begun to grow actively, and in the event of the final adoption of a package of support for the American economy in the amount of $ 1.9 trillion, inflation could “accelerate” to 2.4% as early as next month, according to the investment bank Goldman Sachs. Given these risks, it is only natural for investors to turn their gaze back to safe haven assets.
Support and resistance levels
Asset quotes continue to trade within the global downtrend channel in today’s trading, continuing to try to gain a foothold above the resistance line of a narrow downtrend channel, forming a rare “three crows” candlestick pattern. Technical indicators turned around and issued a local buy signal. Fast EMAs of the Alligator indicator crossed the signal line from the bottom up, and the AO oscillator histogram moved into the buy zone.
Resistance levels: 1720.0, 1760.0
Support levels: 1690.0, 1600.0
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