Forex forecast for today. Gold is trading at the resistance
Gold is trading at the resistance of $1740 per ounce.
Despite the recovery in recent days, precious metals markets, especially Gold, remain sensitive to treasury bond yields. In addition, the possible adoption of Joe Biden's infrastructure plan in the United States should accelerate economic growth, and accordingly makes protective assets less attractive to investors. And the outflow of investors from ETF funds investing in Gold and Silver continues.
The Gold market last week fell below the level of $1700 under the influence of the strengthening of USD, after which the quotes regained some of the losses. Fundamental factors remain negative for the precious metal. The strong Dollar, rising bond yields and positive economic data are particularly negative. According to HSBC, the average annual price of gold in 2021 may be $1830, and in 2022 - $1800 per ounce.
India's gold imports rose 471% to a record 160 tonnes in March, as lower import taxes and a price correction from highs attracted retail buyers and jewelers. In February, the government cut import duties on gold from 12.5% to 10.75% to boost retail demand and reduce unaccounted - for flows of the metal into the country. India's Gold imports could fall below 100 tonnes in April as jewelers fear new quarantine restrictions.
In the trading forecast (signal), I expect the price of Gold to rise to the level of 1760 USD per ounce.