• Find The Best Broker For You
  • Leave Comment About Any Broker
  • Cast Vote For The Best Broker

XAU/USD: Short Review & Forecast

Published on: 26/12/2016

Last month the downward trend of the Gold chart intensified strongly. The strengthening of the dollar has brought down the price for Gold. The strong dollar became the most attractive tool for investors. The demand for metals didn't increase significantly, so the rates went on decreasing until the levels from January 2016. At the moment the value of the Gold is $1130, that's $200 less than it was just two-three months ago.

Now, the drop in the value of Gold has stopped for a week and is keeping at this level. There is some positive impact on Gold prices through the increasing demand in Russia, India and China. When the price of the yellow metal is at a low level, countries tend to buy it in larger quantities, but this has led to a strong consolidation of prices at the current level. Anyway, it’s worth it to expect further rapid decreases of the prices as before.

Gold, H4 chart
On the chart we can see that the quotes are in the downtrend which was formed in September, but we can see that the resistance line is strongly shifted to the bottom. Probably in the next few months a flat trend can be formed, but it is too early to speak about the formation of a new trend. The Gold will continue to be under the pressure of the strong U.S dollar, which will remain more attractive for investors in the near future, so the price can decrease again. Oscillators remain neutral. Given that there are no prerequisites for the growth of Gold prices, the most optimal option is to open short positions by the trend in middle term trading.

Most Rated Brokers