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

Gold has soared to local highs around $1232

Oct 23 2018, 02:45 PM (+06) | Fortfs.com

On Monday, gold prices declined, moving under pressure amid stronger USD dollar, that showed massive gains against almost all major world currencies. As a result, the gold trading session was closed with moderate decline around -4.1 $ (-0.33%).

Earlier strong volatility in equities triggered a sharp increase in demand for gold as one of the main defensive assets against increased risks, but a strong dollar and high yield of US treasury government bonds, which are supported by the Fed’s continuing plans for three more hike rates, severely limit the possibilities for gold recovery.

Yesterday, there were no important economic news on the market, so the market focus was on geopolitical problems, the development of the situation with global equities and the change in USD dollar index. On Monday US equity market was trading in different directions but earlier that day Asian and European markets displayed some positive sentiment. However based on this mixed marker background the gold failed to display directional dynamic and receive some support from continuing high risks in geopolitics.

No major economic events are expected today, so the factors that were mentioned above will have a major impact on the market today as well. The tense situation in geopolitics and fears associated with a slowdown in the global economy provide the development of a bearish trend in global equities, triggering a new increase in demand for safe-haven assets such as gold, Japanese yen and the Swiss franc. Due to the influence of these factors, precious metals today managed to win back all the losses on Monday. However, the ability of gold to continue the growth will very much depend on USD dollar, its further strengthening will severely restrict the growth of the yellow metal, and vice versa, the weakening of the dollar against  can trigger a significant increase in the price of the precious metal.

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.