The price of gold: Positive momentum sets the weak dollar
Gold prices continue to rise on Thursday. The dollar is feeling unwell, not being able to maintain the recent enthusiasm despite the prevailing risk aversion. This also uses the precious metal, which yesterday updated 2-week highs at around 1230 and kept nearby.
As the recovery of market quotations aktiviziruyutsya speculation that gold may have already hit bottom in August, at around 1160. Last week, prices at the moment went below 1200, but quickly recovered, and it is a good signal indicating the return of the attractiveness of the metal.
Now important support is in the area 1218, over which the yellow metal is trading since the beginning of the week. It is also important that the quotes are above the 50 – and 100-day moving averages. If in the coming days will not happen breakthrough of this support, the players will increase confidence in further recovery of gold.
Traditionally, the main tone metal sets the dollar. The U.S. currency fell victim to the doubt of investors in further fed tightening. Moreover, some players are not confident that the regulator will raise rates in December. But the consensus forecast still suggests a fourth this year, increasing the cost of lending.
Is a risk factor for gold, whereas a positive impulse may come in case of progress in trade negotiations between the US and China, as the USD benefits from tensions on this front. So to draw conclusions about the formation of a bottom on gold is already better after the December events.
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