ad
Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market

Gold has gained to three monthly highs

Oct 12 2018, 02:23 PM (+06) | Fortfs.com

What a trading session it was on Thursday for gold market. It has been a long ago when gold displayed such a rally. The gold gained up to two-month highs amid a significant increase in demand for protective assets. The resumed sell-off for equity markets amid weakening USD dollar became very strong support factors for the entire precious metals market, gold was the growth leader, which rose by more than $ 32 (+ 2.75%), then platinum + $ 16.5 (+ 1.99%) and silver + $ 0.27 (+ 1.91%). Today, we are seeing a correction in all these instruments, but the current fundamental background indicates that prices for precious metals will be kept at current levels and may continue to gain in the future. The main driver is a decline in equities amid signs of slowing global growth and new problems associated with global trade will keep demand for defensive assets at high level.

The downward trend in the dollar is also now an important support factor for the yellow metal, which is becoming more affordable for investors holding other currencies. Statistics on consumer price index was weaker than experts had expected, which reduces investors' concerns on a possible overheating of the US economy. This is good news for gold because all expectations regarding the implementation of the current monetary policy of the Fed are already located in the price and now there are almost no factors that could have a strong deterrent effect on the precious metal.

Today a large statistical block will be published in the USA, but it does not contain any fundamentally important data that could seriously change the balance of power in the market. For investors, the main guideline will continue to be the dynamics of equities, yield on US government bonds and USD dollar. For the time being, all these factors indicate a continuation of the trends of recent days, which will contribute to the further growth of the precious metals market.

Fortfs.com

Fort Financial Services - a licensed international Forex broker. A wide range of trading opportunities: more than 500 tradable contracts, Fort, Flex, Pro and Newbie accounts, direct access to world exchanges, diverse trading platforms: MetaTrader4, CQG Trader, Ninja Trader, Binary Options, partnership programs, free analytics and much more.