Gold: under the pressure of the dollar

Troika ounce is traded at $ 1731 and may be even lower. The main factor in the pressure on the “gold” quotes was and remains a strong US dollar. There is nothing new here. Gold does not generate its own profitability, the demand for it is reduced in periods when the profitability of the US Treasury bonds increases.

to everything else, the physical demand for gold looks sluggish. In China, the risks of coronavirus restrictions are expanding again, this is capable of inhibiting industrial production and limiting interest in metals. In India, imported duties for gold are operating, which reduces the demand of customers.

this year, gold practically does not act as a protective exchange asset, which also makes it vulnerable. From the point of view of technical analysis, precious metall can decrease by $ 1722. After the goal is realized, the question will arise about the restoration of price in the area of ​​$ 1760-1765. From there, the market may decide to sell by $ 1700-1705.

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