14.07.2014 - Gold has potential for further growth

The gold price continues to rise gradually. During the last year the quotes of the yellow metal fell by more than 28%, this year we see growing interest in defensive assets among which is gold. Price dynamics is influenced by several factors. So investor’s interest has steadily increased in case of growth of geopolitical tensions, and now alternately to the market are coming disturbing news from Iraq, Libya, Israel and Ukraine where armed clashes continue. On the other hand, investors fear the fall on the world stock markets, because the economy in many countries does not meet the growth forecasts and the market looks overbought.

Negative factor for gold is the lack of real demand for gold in China and India, as well as a steady increase in the production of the yellow metal in the world. From a technical point of view, the price moves in an uptrend and probably will continue to move with the closest goals near 1350 and 1360 dollars per troy ounce. Our outlook for gold prices remains positive.

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