The rates continue within the upward trend. Gold is already trading steadily above the $1,400 level, although at the beginning of the year this level seemed unattainable, despite the high demand for safe assets. What has changed since then? There are several factors added that contribute to the growth of gold: the weakening of the dollar and the widespread easing of monetary policy in the leading countries, including the United States. At the same time, the demand for gold is growing not only from investors, but also from central banks, who actively increase gold reserves and affect the demand.
The situation has not changed this month. The probability of a FED rate cut is rising, negatively affecting the value of the dollar. Moreover, the weakening of the USD is only welcomed by the administration of Donald Trump. As for the medium-term forecasts, most analysts agree that Gold has become one of the most profitable assets of the first half of 2019, having increased in value by 11%. This trend will continue with the further easing of monetary policy, the decline in the growth rate of the world economy. In the medium term, gold is predicted to grow to the level of $1,500, and in 2020 - to $1700-1800, provided the current trends in the global economy and unresolved trade conflicts remain.
In this situation, we believe that the most effective in the medium term will be the deals to Buy, as evidenced by the majority of technical analysis tools. At the same time, the price correction which began yesterday can be observed on the market for a few more days, so the deals against the trend can be effective in the short term.
