21.03.2014 - Correction of gold is about to end
Since last December, the price of gold showed an increase of more than 16%, after which has corrected strongly on the background of the decisions of the Federal Open Market Committee of the U.S. Federal Reserve on the reduction of the quantitative easing program by 10 billion to $ 55 billion. In addition, the dollar strengthened against the possible quicker than expected, raising of the Fed's interest rates.
It is worth noting that the price of gold fell to a strong inclined line of support, which was formed since December 2013 and reached $ 1,320 per troy ounce. We expect the resumption of an upward movement of gold with the objectives in the area of 1344-1352. In addition, demand for gold as the defensive asset, may increase due to the downside risks on the world stock markets.
Wish you the profits!
FXFINPRO Capital Analytical department.