Gold prices continue to consolidate near a strong level of $ 1,330 per troy ounce. We recall that from the beginning of the year quotations of metal rose more than 10 percent. After steady growth, the bulls decided to take a break. From a sharp decline yesterday, the market was restrained by weakening U.S. dollar.
From a fundamental point of view, more factors play in favor of future growth rather than decline. So, investors have doubts about the future growth on the stock markets due to the reduction of quantitative easing program, we also see a slowdown in China. Reserves of funds that invest in gold have stopped the reduction and again show a positive dynamics. Further growth can be limited by strengthening of the dollar.
We maintain a long-term positive outlook for gold with the closest target at 1360 dollars per troy ounce.
Wish you the profits!
FXFINPRO Capital Analytical department.