The gold course completes massive decline of the seventh week in a row
The alignment of forces in the currency and commodity markets openly talks about the supremacy of the dollar bulls. The Euro and pound are testing the important psychological support levels, the yen, despite the impulses of growth, completing a week in a decent red, and gold updates the 13-month lows.
Quotes of the yellow metal complete large-scale decline of seven of the last eight weeks. On the horizon looms around 1200 – recently, the price broke intermediate support around 1205. All recent attempts at restoration of gold was a failure, and now, when the fed confirmed its commitment to further policy tightening, the metal is returned to free fall under the onslaught of the dollar, which also receives nourishment from the growing tension in the trade conflict between SHA China.
If the U.S. currency will not lose my passion and will continue climbing in line with the bullish trend, the odds can easily compromise the integrity of the 1200 level, which now serves as the nearest support. In this case, open the way to around 1196, and further to 1190. Assuming that the dollar will come under profit taking, say, the lack of strong data on employment and wages in the US, gold will hold above 1204 and will be able to target the region 1210. Only a recovery above this level will allow us to speak of an easing of bearish pressure.
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