The price of gold recovering after two disastrous weeks

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In gold this week turned a good recovery process. After completely failing the first two weeks of November is a lull asset only benefit. Plays not only a factor of overselling – the weakening of the dollar also allows the precious metal to regain some of the lost.
On Friday, November 16 Troy ounce of gold is worth $1216,50, and at least this week is at $1196, he is a four-week “bottom”.
Now, when the US dollar temporarily lost its leadership in the foreign exchange market by a number of factors – from the influence of Chinese statistics to a new wave of purchases of American stocks and indexes in the market of precious metals has a chance to balance. According to “Alpari gold”, physical gold demand in the fourth quarter remains very subdued and the lack of market fear of sales or other stress reduces the attractiveness of gold as an asset of the quiet harbour.
In addition it can be noted that high US interest rates (in December is expected to increase) and the process of absorption of dollar liquidity in the market, with the sale by the Fed of assets from its balance sheet remain long-term bearish for gold. Since the beginning of the year, gold lost 7.3 per cent of the cost.
At the same time, it should be understood that in the first quarter of 2019, the fed may suspend the sale of assets and the tightening of monetary conditions that would support gold in particular. In this case, the precious metal has a chance to rise to the level of $1250 per ounce and even higher.
Anna Bodrova,
Senior analyst,