05.05.2014 - Gold rises on instability in Ukraine
The price of gold increased sharply amid rising geopolitical tensions in the world. Reasons for the fears of investors were new clashes in Ukraine and continued anti-terrorist operation in the east of the country. The result of aggravation of the situation can become new sanctions against Russia from the West.
An additional stimulus for the growth of interest in gold may become the traditional May correction. Let us recall that at the moment the American indexes are consolidating near historic highs, and remains less drivers for future growth.
Despite this the demand for the metal from Asian consumers remains low, and investment funds have ceased to increase gold reserves in their portfolios. We expect continued growth in gold prices in the medium and long term, and recommend opening long positions after price fixing above the level of 1305 dollars per troy ounce.
Wish you the profits!
FXFINPRO Capital Analytical department.