The price of gold closed last January with an increase of 5.2%. This means 1210,23 dollars an ounce, this occurred due to the uncertainty about the direction and nature of economic policies from the new elected United States President, Donald Trump, as well as a much weaker dollar in regards to previous years.
The price of gold is usually related to the main reserve currency, this is the dollar and also, it is also directly correlated with the second reserve currency, the Euro. The dollar was under much pressure after the new President of USA, Donald Trump, described it as a too strong currency.
Although some of the investors consider that the United States Federal Reserve will not be as aggressive as it wants to be, Janet Yellen depicted a very gloom sight due to an increase in interest rate this year.
Although the United States interest rates play a very important role within the gold market, there are other key events within an equation that could stimulate the appetite of investors for their diversification.
What to expect for the following weeks of February?
What we can expect for the next weeks of this month is that Trump and Europe will be on the headlines, probably plenty of times throughout this year. Short term statistics show a slight rise, with the gold that will be negotiated above nine of four in 1 hour, but as it’s been possible to watch, there is an expected resistance in the area around the 1220 dollars.
This will mean that the potential rise will be limited unless the pair which would be XAU/USD manages to achieve a place that exceeds the previous figure. Also, it must be kept into consideration that the market will be trading within the daily cloud of Ichimoku and the weekly cloud that is just above us. Break through the 1220 could be a signal of a rise, but it won’t be so simple.
When calculating above 1225 dollars this would indicate that the area of 1250 will be the next stop. Which would indicate that this field must be reached so that it can continue rising until the 1270. In the case of dropping, it will go down around 1200 and the 1190, unless the US doesn’t mind yielding.
When calculating a fall through the 1187, there would be a risk that it could continue dropping reaching the 1179. Once below the 1177, it’s expected to continue dropping from 1171, having the 1160 as the next target to assess. However, it should be taken into consideration that these values may change, either upward or downward, depending on the daily movement of the economy in the world, so these forecasts should be assessed in the same way: daily.