Trade24 offers to your attention an overview of the behavior of gold for one month, from June 15 to July 15, 2016. The basis of all technical analysis were taken information from this period of time.
Financial experts of our company noted four periods on gold on this segment. The first one – from June,15 to June, 21. Average balanced price of the goods does not exceed the figure of $1245-1250 per ounce. Strong support product gave confident the British pound sterling exchange rate, as well as high rates of the main settlement currency purchased capacity.
The second period was determined by the influence of Brexit. It lasted from 22nd to 27th of June. Voting results caused an incredible panic in the market – the goods for two days (June 23-24) added to the cost of $100 per ounce. Experts of Trade24 marked two features – high volatility in the market, and the growth of speculation in the product
The next period – the growth of prices for the yellow metal due to the weak impact of the Bank of England to the collapse of the British currency. It lasted from 29th of June to 7th of July. At the same time, the statements of the British banking sector regulator Mark Carney, who reported certain non-intervention to develop a strategy to save the pound, has led to the further movement of goods. Since the pound heavily depended on the price of gold, as the British currency made the drop to that of 1981, at the same time, gold easily broke the mark of $1360 and getting access to the bar 1375-1380 per ounce.
Last stage – the cost of correction. It lasted from 8th to 15th of July. During this period, the price of the yellow metal has stabilized at levels in 1355 and 1339. Now, there is a smooth adjustment to the level of $1310 per ounce of product. The reason for this was the statements of the Bank of Japan Haruhiko Kuroda to keep interest rates for the yen, and the additional impact of committed falling demand for the metal.
Analysts of Trade24 is believed that by the end of July is expected four possible scenarios. The first – to stabilize the price of gold on korrelyanty level of 5-9 dollars. In the second scenario, the fall in the value will be $1310-1315 to the index due to increased support from major traders. The third – the commission of breakthrough of the resistance level at 1358, which will open towards the mark in 1385-1400.
Also, the expert forecasts will depend on a number of events. It is a statement of the Bank of Japan Haruhiko Kuroda on July 27 about the changes of the emission component of the monetary policy of the rising sun. Another important event will be the ECB decision on interest rates in the short and long term, which will present the head of institution Mario Draghi. And the third event is the decision of the US Federal Reserve Board members about the changes in the interest rate against the dollar for the first time in 5 years.