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.
Wish you the profits!
FXFINPRO Capital Analytical department.