Gold falls in price for four months

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Troy ounce of gold for Wednesday, may 16, is worth $1293,30 and increases by 0.23%, but in the overall picture of a sharp decline in prices for the precious metal today, a symbolic increase does not change anything. According to “Alpari gold” gold prices fall for more than four months and, despite the apparent redundancy of these sales, you can see that prices still have room to fall. Against gold in this case is the US dollar, whose recent sharp strengthening has reduced the attractiveness of precious metals as an asset to the new minimum values.
On the side of greenbay a lot of strong leverage – high yield U.S. ten-year government bonds (the night before the indicator stood at 3.08 per cent, higher than the previous value of 3%) to rally stock indices. The dollar, however, now ignored the weak macroeconomic statistics: statistical data published yesterday showed that retail sales growth in the USA in April has not held up to expectations and was only 0.3% m/m after the March rise of 0.8% m/m. This question was emerging recovery in the sector, which is not very happily for grinbek, but fans of the dollar is calm.
Very similar to what global investors do not know what to do with gold. According to the CFTC, the Commission on trade in commodity futures for the week to 8 may, the total long position in gold fell to 118 thousand contracts (-10,47 thousand), which is a two-month low. However, the overall short position in the precious metal declined to 65.3 thousand contracts (-11,1 million). The market sees very well that gold is oversold, but not yet able to do anything with it.
The daily pattern trading of gold shows that the previous long-term trend in the range of $1303-1368 broken. Now the market is busy or finding new frontiers fresh channel or amplification of the previous movement. While the most likely second option, in which sellers will drive the price of gold to $1291,50, where not excluded failure to the value of $1285 per Troy ounce. Significant resistance is around $1303, which separates the bears from humble the bulls.
Silver prices fell significantly the last two days. Ounce of the precious metal is trading now at $16,29, but while the silver remains inside long-term range of $16-$17. Here it is necessary to carefully watch the development of events, at lower prices in the $16,05-$16,10 may open interesting levels for purchases.
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Anna Bodrova,
Senior analyst,
Alpari