Gold rate updated at least 2018
Despite long-standing signs of oversold gold prices remain under pressure. Didn’t help the metal of yesterday’s escape from risks, which have an indirect effect on the dynamics of the metal, although he reserves the status of a protective asset.
Blame – a strong dollar, which has strengthened its position in contrast to the rhetoric of the fed and other key Central Banks. The theme of divergence in monetary policy makes the Euro to trade near the lows of the current year, which plays a significant role in the rise of the USD index.
Signs of an easing of the pressure on the yellow metal yet still not observed. Yesterday quotes has updated the lows of 2018 on level 1270, although a week ago almost tested the coveted level 1310.Only after strong breakout of this mark will speak about the signs of fracture of the negative trends.
While such a scenario is not expected even if the world’s financial markets will embrace a new wave of flight from risky assets.
Gold will continue to push off from the sentiment on the dollar and may go to fresh lows if the currency will maintain a bullish bias. However, given the magnitude of the drawdown of metal recovery price in case of profit-taking on long dollar positions promises to be spectacular.
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