Gold keeps on trading under strong pressure despite a bunch of factors that would have to support the precious metal. Earlier strong USD dollar exerted strong pressure on the gold, USD was displaying strong upward momentum making gold more expensive for the most part of investors. However, for the last days USD dollar index retreated under some pressure bouncing off from the strategical 95 points level. This local but significant USD pullback was compliantly ignored by the gold market, gold bulls did not even make an attempt to recover some gold losses.
For the last days there is a constant geopolitical concerns in the market agenda connected with global trade. These risks emanate from the threats for international trade and gradual movement to protectionism which no doubt will affect the global economic expansion and the economic growth of every particular country.:clap:
President Trump's harsh statements don’t make it easier to resolve the conflict and now it looks that even these attempts are left behind as opponents try to frighten each other with possible damage for economy. As a result, all global equity indexes started the week in the red. Yesterday it was a very negative day for American equities. DOW lost 1.33% while hi-tech NASDAQ declined more then 2%. This kind of market negative session always increase demand for safe-haven assets but what is the most interesting point for us here is that the gold market has ignored this sell-off and did not even tried to recover some ground. This might be a middle-term negative signal indicating to dominance of gold bears.
Looks like the new announced FOMC politic is the most important long-term driver for gold market. Traders attention focused on the regulator plans to raise the rate once or evan twice in the second half of the current year.
Today market attention will focused upon geopolitical factors as well as economic data that will enter the news background later. For the most important part, we can point out the data on consumer confidence data in US. Given the local negative sentiment in USD dollar and recent equities market sell-off we would expect some gold recovery but looks like these factors are no longer drivers for the market. And in this situation we might see some local lows updates. However $1260 support level is the price area to watch.:-0
For the last days there is a constant geopolitical concerns in the market agenda connected with global trade. These risks emanate from the threats for international trade and gradual movement to protectionism which no doubt will affect the global economic expansion and the economic growth of every particular country.:clap:
President Trump's harsh statements don’t make it easier to resolve the conflict and now it looks that even these attempts are left behind as opponents try to frighten each other with possible damage for economy. As a result, all global equity indexes started the week in the red. Yesterday it was a very negative day for American equities. DOW lost 1.33% while hi-tech NASDAQ declined more then 2%. This kind of market negative session always increase demand for safe-haven assets but what is the most interesting point for us here is that the gold market has ignored this sell-off and did not even tried to recover some ground. This might be a middle-term negative signal indicating to dominance of gold bears.
Looks like the new announced FOMC politic is the most important long-term driver for gold market. Traders attention focused on the regulator plans to raise the rate once or evan twice in the second half of the current year.
Today market attention will focused upon geopolitical factors as well as economic data that will enter the news background later. For the most important part, we can point out the data on consumer confidence data in US. Given the local negative sentiment in USD dollar and recent equities market sell-off we would expect some gold recovery but looks like these factors are no longer drivers for the market. And in this situation we might see some local lows updates. However $1260 support level is the price area to watch.:-0
