FX & CFD trading involves significant risk
Gold prices rose slightly, reaching maximum values at the same time the end of March, due to the weakness of the U.S. dollar and growing tensions in Iraq. Recall that the market closed yesterday, rising to the second quarter in a row, and in June showed the best result since February.
"In this quarter, we expect higher gold prices, or even their growth due to great uncertainty," - said Phillip Futures investment analyst Howie Lee. According to him, the resistance level for gold - $ 1365 per ounce, and the level of support - $ 1189.
Gold is also supported by geopolitical problems. Iraqi army is trying to dislodge Sunni insurgents from Tikrit and Ukraine renewed offensive against pro-Russian separatists in the east of the country after the end of the truce. It should be noted that due to local wars in Iraq and Ukraine gold has risen in price by 10 percent since the beginning of the year.
Experts point out that in the coming days will be determined by the prospects of gold widely anticipated report from the U.S. labor market, the publication of which is scheduled for Thursday. It may surprise the market, both for better and for worse. In the first case, possible sale of gold on a background of concerns about the return policy tightening by the Federal Reserve System. In the second case, buying gold is likely to continue due to expectations of a longer period of soft U.S. central bank policy.
Meanwhile, adding that the investment demand for gold has also increased, which further supports the demand for gold futures. As it became known, the world's largest reserves secured gold exchange-traded fund SPDR Gold Trust on Monday rose by 5.68 tons to 790.70 tons, indicating the growth of investment demand. In general, in the II quarter of the volume of deposits decreased by 37 t On the other hand, during the same period last year, the volume of deposits in the funds has fallen by more than 400 tonnes demand in the physical market, however, decreases with increasing prices. Prices in China for $ 1 per ounce lower than the world.
The cost of the August gold futures on the COMEX today rose to $ 1330.8 per ounce.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.