Gold: Critical weakness

local corrections are not admiring – Troika ounce remains weak and retains the risks of disruptions even lower. Gold is traded at $ 1712 on Tuesday. What’s next? In terms of technical analysis, the last few days gold is consolidated about $ 1715. Further, the market will need to decide on the direction of movement. In the event that there are more bulls, the price will go to $ 1767. If the “bears” outweigh the number, the path will open to $ 1688.

now the positions of the US dollar have adjusted, and in such conditions, Hypothetically, gold could grow well in price. Another thing is that now there are critically few buyers – the market scares the possibilities of a widespread recession.

Gold this year does not act either in the role of a protective asset, or in the format of an alternative mechanism for investment. In addition, gold does not generate its own profitability, so now it is difficult to compete, for example, with treasury bonds. Therefore, his weak market position is understandable. There are good chances in the long run for height by $ 2000 and $ 2300. But this is for the patient.