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Gold is falling on positive economic news

Olymp Trade

Gold continues to lose ground. Its spot price has already dropped below $1270 per troy ounce. The metal is trading close to the trend line, but there is still no strong support from the buyers. At this rate, the price may fall to $1250. On the other hand, the asset has been consolidating in a falling triangle since the end of February. Therefore, if the current trend line is not broken, it is quite reasonable to expect an upward local correction up to $1290. Of course, the local sentiment will be formed by fundamental background.

First, the local decline in gold price is associated with the growth of USD and US stock markets. Many companies showed excellent performance in their quarterly reports, so traders appetite for risky assets has increased. Good data on the Chinese economy and good statistics on the US real estate market have also made traders more confident.

News on the tougher US sanctions against Iran kept safe heaven assets unexpectedly neutral. The six-months waivers to some countries that allowed to buy oil from Iran will end in early May. Iran was the main supplier of oil for China, and it seems that the PRC will have to look for new suppliers. Perhaps this will somehow affect the trade negotiations between the United States and China. According to some reports, both sides are close to signing a deal and next Tuesday, US officials will travel to Beijing to hold a new round of negotiations.

Olymp Trade Review

Source: https://olymptrade.com/
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