Traders cannot determine the direction of the price of gold. Thus, the dynamics of quotations lately was influenced by the strengthening of the dollar on the background of positive economic data and statements of the Federal Reserve that in case of improvement of situation on the labor market the interest rate of the Fed will be increased. In addition it is expected that quantitative easing program will be completed in October. Demand for the metal remains weak by consumers in Asia and investment funds. Geopolitical tensions remain high, but gradually reduce, which also contributes to the fall in prices.
In the medium term, the price of gold can be supported by the correction on global stock markets. We maintain our positive outlook for the medium-term, but would recommend to wait for the price fixation above 1290 to open long positions with the targets of 1320 and 1,330 dollars per troy ounce.