Yesterday, during the New-York trading session, the price of the gold futures for April delivery declined down to the session low. Also, $1241,70 per troy ounce is the lowest price of the entire contract.
By the end of the American trading session, the price was down by $19,70. Today’s Comex trading session started with $1244,20 per troy ounce after yesterday’s drop.
Let’s try to figure out the near-term prospects of gold together with Masterforex-V Academy.
Yesterday was a bullish day for stock and indices worldwide. By the end of the day, S&P 500 was up by 1,13%. Other stock indices also indicated decent gains yesterday. When the US stock indices are strengthening, the US Dollar follows. The Fed is going to continue tapering QE3. This time the program is cut by $10bn a month more. This news amid stronger economic figures keps exerting extra pressure on gold since the US Dollar and gold are negatively correlated.
At the same time, the experts say that the existing and future instability in the currency systems of other nations may eventually support the price of gold. At the same time, gold seems to have been showing a bullish tendency since December 31st 2013.
At the same time, if to take a look at the USD index chart (given below), we may see a strong bullish momentum indicating the current strength of the US Dollar against other major currencies.
The experts say that the bullish scenario is fairly likely to manifest itself – up to 81,36 and then the 81,52 high. Still, if there is a downswing, it will probably goes down to 80,97 and will be stopped by the defensive sloping channel.
