Once again, there is an imbalance of trading activity. Throughout Wednesday, the US dollar strengthened, and world currencies were in the red zone. At the same time, the banking metal showed steady purchases, despite the leading positions of the US currency. A promising target opens at the resistance of $1,781 per ounce.
It is important to note that the US stock market is experiencing turbulence. Key US indices are trading in a negative way, tech giant stocks are under pressure. What is the decline in the value of Facebook shares, and the sensational panic against the background of the failure of the social network. Therefore, an increase in the value of gold may provoke another wave of investment interest to buy.
In addition, market participants see that bond yields are rising, while inflation shows growth at a moderate pace. Under such circumstances, the securities of tech companies are less attractive for purchases. The media note that investors are concerned about the Fed's decision to curtail the asset repurchase program next month. The situation with the US debt ceiling, which continues in Congress, does not add optimism.
The restraining level against the decline of gold is the area of 1680-1720 – these are the price supports of March and August.