U.S. economic data released earlier this week, less market expectations and the international monetary fund (IMF) by the U.S. economic growth forecast for this year and next, making the dollar index hit 100 back again at the beginning of this week. But the overall trend upward at the dollar index is still in operation, make the international spot gold prices fell under pressure to below $1200 an ounce, short-term or is expected to dip to $1180 an ounce to seek support.
Fundamentals, the global economic environment remains a loose monetary policy. Especially the European central bank to further expand the scale of easing, and the Greek problem has failed to ease, the euro against the dollar on the currency markets as close to the level of 1 to 1. Display a large number of investment outflows from the region, to recent strengthening dollar index to provide strong support. Afternoon is expected as the dollar index rising, will cause heavy pressure to gold in the future.
With gold prices continued downward, the global mining companies operating under pressure. Many gold producers falling nearly half of the new mine investment, gold mineral is expected this year’s growth or will fall to the lowest level since 6 years. And the current is in physical gold sales off-season, physical gold is not too much good news of the gold market.
From the technical trend, figure display, gold in the high test $1220 an ounce on schedule resistance after back to below $1200 an ounce. Deal, it is suggested that activist investors can maintain high last week on the short train of thought, target $1180 to $1160 an ounce, break the $1208 an ounce on stop-loss exit, Pay attention to position control. Prudent investors looking for, stay gold above $1300 an ounce after is expected to reverse the medium-term downward trend.