Yesterday it was an extremely volatile day for the gold as well as for entire market. For the first part of the session we sow strong pressure in the gold , but by the end of the day the price was able to go up on the background of a weaker dollar and a decrease in the yield of US treasury bonds.
Donald Trump once again tried to influence the Fed's policy and USD dollar rate. We even expected something like this. It is interesting enough that this were almost the same levels where Trump intervened the last time. In short, US president expressed his dissatisfaction with the rapid pace of interest rate hikes. According to the American president, the economy is experiencing a shortage of inflationary pressure, on the background of the implementation of the current Fed policy, which could later lead to a slowdown in the US economic growth. At the same time, Trump noted that he was not going to interfere in further actions by the Fed. The market reaction was quite fast, the yield on 10-year government bonds dropped to 3.199% by the end of the day, USD dollar index also turned down, ending the trading day with a slight minus.
Unlike Trump, IMF yesterday identified other reasons for a possible slowdown in US economic growth. The International Monetary Fund maintained its forecast for GDP growth in the USA for 2018 at the level of 2.9%, but lowered the forecast for 2019 from 2.7% to 2.5% due to exacerbated trade confrontation between Beijing and Washington. Due to same reasons, the growth forecast for Chinese economy in 2019 was reduced from 6.4% to 6.2%, the forecast for 2018 remained at the level of 6.6%. Data from the IMF has increased investor interest in defensive assets amid growing global uncertainty and heightening risks associated with a slowdown in the global economy.
Today, gold is still trading in positive territory close to the important resistance level $1190, with a result of + 0.18%, on the continued decline in the dollar index, as well as the mixed dynamics of movement in stock markets. No much important economic statistics will be today, only data on changes in the producer price index can cause a surge in trading activity, so most likely geopolitical factors, as well as the dynamics of the yield curve of US government bonds will continue to be the main drivers for investors.