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Gold retreated to February lows

Olymp Trade

The spot price of gold continues to decline. After breaking through the uptrend line slightly below $1320, the price of the precious metal dropped to the level of $1305. This level is the strongest local support since February began. Therefore, until the support is broken, it is too early to talk about a countertrend. Rather, we can expect a reversal from the current zone and a transition to medium-term consolidation.
Local fundamental factors are still playing against the asset. The breaking of the trend line on Thursday, February 28, occurred after the publication of data on US GDP. The market, which expected bad data (some analysts gave a forecast of around 2.3%), was pleased with the actual value of 2.6%. This strengthened the US dollar locally, giving a local downward momentum to XAU/USD.
After a small consolidation on March 1, the fall continued. It was a reference point in the trade war between the United States and China. New tariffs for Chinese imports were not introduced, geopolitical tensions have decreased slightly. It still persists in Europe - the political crisis in Italy and the incomprehensible situation with Brexit have not gone away. On the other hand, a new hotbed of tension emerged in the form of clashes between India and Pakistan.
Given the recent increase in demand from the Central Banks, large investors and funds, the area of ​​$1300-$1305 per troy ounce should be a strong area for ​​buyers. We will find out in the near future if there will be a change in this trend or not.

Olymp Trade Review

Source: https://olymptrade.com/
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