The price of gold is in no hurry to drop even with the rising dollar
After some hesitation, sentiment in the stock markets of the world has improved again, while the dollar continues to grow, digesting the results of the fed meeting last week. The lack of interest in defensive assets gold stalled near its one-week lows. The downside pressure on the metal is limited, which demonstrates the caution of investors and the reluctance of players to more actively get rid of the precious metal.
Quotes develop a systematic correction from recent highs above the 1326 level, but still held above the important level of 1300. Additional pressure on the gold has the growth of yields on 10-year treasuries, which increased for the third consecutive day.
The softening of the position of the Federal reserve gives a good support for the yellow metal, and if in the future US economic data do not contradict the more “flexible” and “patient” attitude of the Central Bank, gold has all chances to resume its rally after a temporary pullback, which at this stage is of local character.
In the short term quotes need to hold above support near 1300, and the broader picture shows that the bullish trend remains in force until violated the integrity of the 200-day moving average in 1245, under which passes the 100-day average. The intersection of these lines will indicate the improvement of the technical prospects of metal.
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