On Tuesday, gold lost 1% dropping to its annual lows, and continues its downward move today, losing about 0.27%. The main decline driver was again US dollar, which moved to strengthening after Powel statements confirming plans to raise interest rates on a strong economy and a stable level of inflation in the country.
Today, the bearish trend for gold continues as strong support for the US currency was provided by comments of former Fed Chairman Ben Bernanke, who headed the central bank from 2006 to 2014. In fact, he spoke positively about the plans of the Fed and approved Powell's words assessing the current growth rates of the economy and the prospects for its further development.
In addition, pressure for the entire metal market continues to be a concern regarding the prospects for further development of the world economy, as negative signs in China's economy appears. China remains the main consumer of raw materials in the world. Therefore, other metals continue to show negative dynamics, yesterday copper lost about 0.6%, silver more than 1%, platinum more than 0.6%.
In general, the situation in the precious metals market remains negative, the risks and impact of US protectionist policies on world trade, as well as the strengthening of the dollar, will exert strong pressure on metals. Today again, Jerome Powell will visit the US Senate and it is unlikely that his words will seriously weaken the positions of the US currency. Gold buyers now can only rely on a strong oversold and after reaching minimums from mid-July 2017, they can trigger profit taking of short positions.