01.07.2014 - End of truce in Ukraine increased the price of gold

The price of gold after a long consolidation near 1310-1320 dollars per troy ounce rose amid the end of the armistice in Ukraine, which lasted 10 days. As a result, the Ukrainian army started an offensive actions and probably in the coming weeks will complete the anti-terrorist operation in the east. After the end of the confrontation, we expect a decrease of the level of geopolitical tensions in the region.

In addition, the high price of gold is supported by hostilities in Iraq, where Sunni militants continue to control the north of the country.

Despite this the demand for physical gold from investment funds backed by gold and consumers in China remains low. Growth of quotations of the metal in the future may be due to the fall on the stock markets around the world. We keep a positive medium-term outlook for gold with the closest target near $ 1,350 per troy ounce.

A Pile of Slabs of Gold

Wish you the profits!

FXFINPRO Capital Analytical department.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.