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Gold is ready to update its annual maximum

Olymp Trade

Gold continues to grow vertically. The asset moved close to its annual maximum of just above $1346 per troy ounce. The bulls literally lacked a few dollars - the local high of June 5 was at around $1344. Nevertheless, given the current volatility and judging by the aggressive mood of buyers, the annual maximum will be updated. Some analysts say the target for the current trend is above $1400; gold has not been trading above this psychological level since 2013. However, there is a serious zone of resistance $1350-1375, which has been an insurmountable obstacle for the past 5 years. However, given the current geopolitical situation, buyers have every chance to break through this year.

The bullish sentiment is supported by the US Federal Reserve. In his recent speech, Jerome Powell said that the central bank is going to make every effort to support the record growth of the US economy against the background of trade wars with China and Mexico.

Neither countries nor the global economy will benefit from trade wars. The International Monetary Fund experts believe that China’s economy may slow down to 6% next year and to 5.5% by 2024 due to the failure of trade negotiations. Similarly, a trade war will be the cause of a 0.5% decline in the world production by 2020, which is the same as $455 billion of global GDP. There has been another failure in the Mexican direction. The progress on the prevention of illegal migration achieved in the negotiations did not prevent the US from imposing a 5% tariff on Mexican goods. They will come into effect on Monday.

Olymp Trade Review

Source: https://olymptrade.com/
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