The price of Gold rose to the level of 1791 US Dollars per ounce and came close to the resistance of 1800.
The asset gained 1% in value at once due to the fall in the yield of US treasury bonds below the level of 1.6%. The technical scenario for Gold improved significantly as prices broke above the key resistance of $1,750. Any news regarding additional monetary stimulus can be seen as another positive market driver. Traders are optimistic about the ECB meeting today and the Fed meeting next week, as both Central Banks plan to maintain a soft monetary policy for a long time.
Demand for Gold has increased in India with the start of the next wedding season. Buyers are convinced that the price of the precious metal is unlikely to fall even more in the near future, so the demand for the asset has increased. Since April, the Indian government has doubled its Gold import quota, but this amount is still not enough to fully meet the rapidly growing demand. Low supply leads to higher prices in the domestic market of India and indirectly affects world prices. However, fluctuations in investment demand remain the key factor influencing prices.
Gold Trading Signals
The forecast assumes further strengthening of Gold price to the levels of 1795, 1800 and 1805 dollars per ounce.