The rate of gold trying to recover
If to mid-August, the dynamics of the price of gold was purely bearish, after reaching highs in the area of 1160 metal began to attempt recovery, using the weakening of upward pressure on the dollar. However, corrective movements still lack confidence, and on the growth of metal often attracts sellers.
On Thursday, gold is testing the 1200 level, developing yesterday’s recovery due to fixation of profit on long dollar positions. The U.S. currency remains in line with the bullish trend of the fracture which will not happen as long as markets are not fully incorporated in the price of the next fed rate hike and the effect of a trade war with China.
However, gradual cooling of interest in buying USD already submitted a preliminary indication that the above factors have almost priced in, and this may mean that in the medium term climb of the dollar will be threatened. More likely it will happen next year, when the ECB talks about raising rates.
So while the yellow metal will have to settle for the weakening of bearish pressure and probably a more bold attempts to recover losses. From a technical point of view, as long as the quotes will not be fixed confidently above the 1225 level, risks will remain as sales growth.
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