Gold rises in price the fourth day in a row, updating the 8-month highs
Gold rises in price the fourth day in a row, updating Wednesday’s 8-month highs on the approach to $1316. For monthly charts, the picture looks even more impressive – metal finishes growth for the fourth month in a row, and have been especially productive December, when financial markets panicked and the dollar lost attractiveness due to the softening of rhetoric by the fed.
The bullish trend for the yellow metal remains in force and strengthened the growth of concern of investors due to a number of risk factors at the global level. Now all the market attention focused on a new round of talks between the US and China. This factor can bring victory to gold unless the parties will record the progress in resolving key differences.
The dollar factor also is playing on the side of the precious metal. Traders do not expect from the fed’s former “enthusiasm” and counting on the inaction of the Central Bank in the coming year. In their forecasts markets refer primarily to the economic risks. Indeed, GDP growth and inflation in the United States slows down, including the fading effect of fiscal stimulus, but also the warnings about the recession quite inappropriate, at least at this stage.
Regarding the political crisis in the US, which also adds to the attractiveness of the dollar and contributes to higher interest in gold, sooner or later the issue of financing is resolved, and the situation stabiliziruemost.
In other words, if you talk specifically about the support for metal from “American”, in the longer term it is not necessary to put a cross on the currency that is still interesting due to the high costs. So, in the foreseeable future despite signs of overbought, gold could continue its journey North, but in the long term 2019 forecasts for the dollar may be too pessimistic, we’ll play against the protective metal.
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