On Friday, gold showed a steady decline. The price stopped at $ 1258 per troy ounce, experiencing pressure from the news. The global demand for gold is falling - in the second quarter there was a decrease of 10%. Most likely, this decline in demand will continue, which will lead to a drop in the price gold. Statistics show a decrease in unemployment in the US, which in turn pushes the dollar index up, and the price of gold in dollars down. Gold is one of the world's most important trading instruments. In addition to being a reliable strategic asset, gold is also a good indicator of the mood in the financial markets.

The four-hour gold chart shows a bearish divergence, i.e. The divergence of the direction of the vertices of the MACD indicator and the price chart in such a way that higher price peaks are not supported by higher highs on the MACD indicator. The MACD indicator is used to determine the strength of the trend, the direction of the trend and pivots. The divergence is distinctly visible on the chart - these are the descending tops of the indicator at the bottom of the four-hour chart and the upward price channel, whose lower bound is broken on a good volume.



On the daily chart, significant levels are near the mark of $ 1300 and $ 1275, in the region of the upward price channel, from which a reversal may have started to reduce to the price to levels of $ 1220-1230 per troy ounce. Most likely, one should not expect a powerful upward movement in the price of gold. A change in the current trend of the beginning of a decline seems unlikely, only extraordinary news or "black swan" events have the ability to affect it unexpectedly.



Care: These reviews are a private opinion of ARUM CAPITAL and are provided for information only. In no way can the provided analysis be considered as an action signal, neither is it any sort of investment advice (for the purposes of EU Directive 2004/39/EC). ARUM CAPITAL waives any liability for the trading results which may arise after using these reviews. These materials contain NO warranties or guarantees, either direct or implicit, on the precise, complete or confirmed character of the details they contain.


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