The price of gold made new high of end of June 1266 dollars per ounce
Before the price of gold made new high of the end of June at around 1266. However, the metal failed to close above the level of 1260, and today there is a smooth correction. In this weekly chart of gold looks quite confident.
The precious metal ahead of the dollar as a protective asset. This is largely due to reaction to recent Federal reserve meeting, which failed to support the “American”, since the rate hike was priced in and the reference to downside risks to the economy not like the bulls on USD. The attractiveness of the currency is also suffering because of another threat to the shutdown of the U.S. government.
Against this background, the gold really looks interesting for shopping. By the way, if the White house can’t agree on the budget, and the government really will be paralyzed, this will increase fears about the slowing U.S. economy and, therefore, will deal another blow to the dollar.
Thus, the USD may remain in a defensive position to the end of this year, which means that the price of gold will have a chance to break through to new lows within the upward correction that started in mid-August and recently acquired a clearer outline.
From a technical point of view, in the short term, the yellow metal needs to hold above 1250 level to avoid a more aggressive profit taking. In case of successful test the level of 1266 next important goal of bulls will become the level 1273.50.
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