The current situation is unstable in the financial markets and the global economy. The monetary policy of the Federal Reserve has stronger impact on price movements of precious metal.The policy of cheap money is ended. It is expected to increase interest rates. It doesn’t favor the growth of gold prices that the market has the role that investors should invest in periods of instability and crisis. When the Federal Reserve really decide on this step it is still uncertain. The unemployment rate and inflation have to be close to target values. General economic conditions in the US could be for some time to postpone hike rate. The dollar decline isn’t caused by stronger growth in prices of precious metals.
Worse than expected economic inflation in China increased the probability that China will continue to permissive monetary policy. It was reflected positively on the price of gold. China and India are the world’s largest buyers of the gold. On Monday the price of gold fell 1.48%. It was published excellent results in New Home Sales in the US in May. Good results have sparked optimism to recovery of the US economy and the possibility of raising interest rates this year. The expectation of rising interest rates has a negative impact on the price of gold on the market. The gold represents safe instruments to invest more in periods of uncertainty in the market. The gold price held steady near a three weeks minimum. Positive economic results recently published in the US supported the the US dollar. It was negative impact on the price of the gold.
Capped by negative trend line with a targets 1169 and 1162 in extension.
Supports and resistances levels
MACD (12,26,9) SELL
RSI (14) SELL
Stochastic (9,6,2) SELL