After reaching the maximum values recorded for the first time since mid-June, the course of the yellow precious metal is stuck in a limited range. The gold rally stalled on the outskirts of the mark at $ 1,300.
"The longer the bulls remain idle, the more active the talk that the XAU / USD pair has already formed a local peak will become more active," analysts said.
"Today, this hypothesis can be confirmed if the economic report published by the Federal Reserve System (FRS) of the USA," Beige Book ", turns out to be quite optimistic. This may give impetus to the dollar. At the same time, gold will be forced to retreat from its cherished goal of $ 1,300. However, in the long run, the precious metal can still make a breakthrough," they added.
It is assumed that the main driver of growth of quotations will be the slowdown in the process of raising interest rates by the Fed.
If relatively recently, investors had expected the regulator to raise the rate three times this year, now even one increase is being questioned.
In addition, it is possible that in the summer of 2019 a recession will occur in the US economy.
The first hints of this may appear in the spring. Then the reduction in the balance of the Fed may be suspended. Instead, another quantitative easing program will be launched. In this case, the dollar will decline, which will be a supporting factor for the value of gold, which, as a rule, acts as a protective asset during economic and political instability.
The material has been provided by InstaForex Company -
www.instaforex.com