Gold is not enough the current rate of decline of the dollar
Dating back to week gold finishes in the black, thanks to the weakening of the dollar across the entire spectrum of the market. The main factors of pressure on the American currency became weak data on inflation at the consumer and production levels that are somewhat cooled expectations of further rate hikes by the fed.
His contribution made and a renewed interest in risk amid signs of a slowdown of tensions between the US and China. However, according to recent provocative tweets trump, while trade negotiations between the two countries resumes.
Despite support from a weakening dollar, the yellow metal fails to show a more steady rise, gold continues to attract sales growth, although already starting to appear talking about the formation of the bottom.
At this stage, important technical resistance is presented in the 1215 area, which quotes are unable to reach in the course of yesterday’s short term rally and rebounded in late August. Also, this area has repeatedly limited the growth in the first half of last month.
If sentiment on USD in the coming days does not improve, the precious metal will have a chance to test this area. In this case, the next target will be the mark 1220, and in the longer term – 1236 and 1244.
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