Trading recommendations and Technical Analysis – HERE!
On the COMEX quote of the February gold futures declined on Wednesday by 0.5% to 1068,30 USD per ounce.
However, on Thursday the pair XAU/USD up from the opening day and, it seems, closes trading week in positive territory. Support prices for precious metals and gold had raised yesterday the prices for oil. The price of Brent crude has corrected from the level below the level of 36.00 in the background posted on Wednesday the U.S. Department of energy data showing that inventories in the U.S. last week declined unexpectedly.
In mid-November, the gold price broke through key support at around $ 1085.00 per ounce and fell in December to $ 1047.00. In the last 6 weeks the XAU/USD pair is trading in the range between these two levels, however, the trend of further decline on stronger dollar persists.
The gradual tightening of monetary policy by the fed and the global economic recovery will keep gold prices under pressure.
However, inflation in the U.S. is unlikely to grow at a rapid pace, and the fed will maintain a slow pace in raising interest rates in the short term.
The fed plans to raise the key interest rates of up to 1,375% by the end of 2016, up 2,375% by the end of 2017 and to 3.25% by the end of 2018.
Against the background of rising interest rates, the dollar will grow. The strengthening of the dollar will put pressure on gold, as the cost of borrowing for the purchase and storage of gold will rise.
