The price of gold soared after the decline of the U.S. dollar and the statement that the Fed will leave interest rates at their current level for a long time despite the fact that inflation in May was 0.4% vs. expected 0.2%. Accelerating inflation is one of the drivers of the price growth. In addition, gold prices are supported by news from Iraq, where continues fighting with terrorists. Situation in Ukraine is getting worse on the background of inactivity of Ukrainian authorities in the completion of the anti-terrorist operation and increased tension in the relations between Russia and Ukraine.
Demand for physical gold from investment funds and Chinese consumers remains weak and the strong demand in India fell after the end of the wedding season. We expect that the price of gold will continue to rise amid growing geopolitical risks and increases the likelihood of correction on the stock markets.
Wish you the profits!
FXFINPRO Capital Analytical department.