The price of gold will increase due to the fall in global markets

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The day before, the comments for one of the resources I wrote about the gold. And the summary was: “…resilience can be up to 50% of the fall from January 2018. And this levels near $1260 -$1280. Immediate objectives for the growth of gold is $1208 $1211…”. Well, who would have thought that “despicable” for 9 months, the metal suddenly become a favorite. Today morning, after hitting $1226.26, gold is trading at $1219 for Tr. Ounce. A previous strong resistance level remained far below.
But it is very appropriate to remember the absolute law for any successful and sensible investors and speculators – the MARKET is ALWAYS right. After the collapse of the stock and commodity platforms, quite naturally, the winners were defensive assets – the Swiss franc and Japanese yen. And last Thursday the game involved and gold.
Severely cheapened over the past year the asset again to use the “privilege” safe Harbor in times of turbulence in financial markets. And therefore the conclusion is simple – any pullback down to $1212 per ounce is a possibility to enter the position at the time of the birth of a fresh growing trend.
But do not forget the law about the rightness of the market. And if the price again fall below $1211, then all purchases is to eliminate and re-evaluate the prospects of gold.
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Alexander Egorov,
Currency strategist,
TeleTrade