The rates continue within an uptrend. Gold reached the highest level for the last six years in early September, but then began to fall rapidly due to the wave of optimism that began on the market. At the same time, we see a consolidation of the rates and the formation of a flat trend, starting in August, with a range of 1485-1551.8 dollars.
The decline in gold prices began a week ago, after the announcement of a new round of negotiations between China and the United States. Both sides of the conflict expressed a wish to reach an agreement and end their conflict. Investors willingly believed in it. Since then, we have seen an increase in the demand for risky assets, which led to the strengthening of the dollar, which is also periodically supported by good macroeconomic reports. In particular, the consumer price index rose for the 11th consecutive month by 0.3%. A good situation is also observed on the labor market, despite the reduction in the number of vacancies. However, the dollar remains under pressure due to the likelihood of a further easing of the FED's monetary policy, which is required by the administration of Donald Trump.
We can see on the chart a testing of the support line and its shifting downwards. However, the factors supporting gold are waiting for their time and will not disappear in the near future. Therefore, the decline in gold prices should be considered as another opportunity to earn on the growth of prices after the completion of the price correction. At the same time, the flat trend is likely to continue, replacing the uptrend. Most of the technical analysis tools indicate the efficiency of the deals to BUY. The Stochastic oscillator points that the rates are in the oversold zone, which finally convinced us in the deals to BUY.
