FX & CFD trading involves significant risk
Gold prices rose today, closer to one-week high, which was due to geopolitical factors and speculative buying. But gold is still near nine-month low after last week the Fed reduced its bond-buying program by $ 10 billion.
Today, the demand for the precious metal has recovered after the United States announced that for the first time on Monday with five partner countries began air strikes on positions applied group "Islamic State" on Syrian territory. Air strikes are part of the military campaign, the Obama administration has approved nearly two weeks ago and aimed at the "deterioration and, ultimately, the destruction of" militants.
Meanwhile, we add that the rise in prices is constrained by the strengthening of the dollar: it lowers the metal's appeal as an alternative asset and rises in the price of dollar-denominated commodities for buyers in other currencies. The dollar against a basket of six major currencies held just below four-year high due to expectations of an early rise in interest rates the Fed.
However, investment demand for gold bullion continues to decline. The assets of the world's largest holder of gold investment institutions ETFs SPDR Gold Trust at the end of Monday fell by 1.79 m and fell to the level of 774.65 m - the lowest rate since December 26, 2008.
"Investors withdraw funds from precious metals, seeing a reduction of risks in the world and the strengthening of the dollar, said the director of ETF Securities Danny Leydler. - "We believe the current price of gold is very attractive for long-term investors."
Apparently, today the price of gold price dynamics limited support level of $ 1207.00 per ounce and resistance level $ 1,240.0 an ounce, experts say.
The cost of the October gold futures on the COMEX today rose to 1221.50 dollars 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.