Technically, nothing has changed in the banking metal market – the same trading range is visible. From reliable price support in the American session, confident purchases began. If the purchases continue, then the resistance targets of 1776 and 1781 dollars per ounce will open.
The restraining level against the decline of gold is the area of 1680-1720 – these are the price supports of March and August.
Trading activity is expected to increase on Wednesday. The US session will see changes in the number of people employed outside agriculture from the US ADP for September. Good data will only strengthen the position of the US dollar against other world currencies. Do not forget that investors have a priority in favor of the US dollar, since the expected changes in the monetary policy of the US Federal Reserve provoke the strengthening of the US currency.
From the news that can have a positive impact on gold trading, it is necessary to highlight signals from the United States. The media reported that Biden declared a threat to the dollar as the world's reserve currency. At first glance, these are more emotional statements, but, on the other hand, they hide the traditional successive steps of the US Congress. The US President noted that during the presidency of Donald Trump, Congress agreed to raise the level of the national debt four times, and Democrats supported such actions. If the Republicans do not meet the initiatives this time, it will jeopardize the status of the dollar as the world's reserve currency.