Technical analysis and trading recommendations - https://fxpcm.com/en/fx/xauusd-gold-demand-remains-30062016
The net long position in gold by hedge funds and other speculative investors kept at multi-year highs, and the price-spot with the opening of today's trading day - close to the level of $ 1315.00 per ounce. After Friday the gold price quotes jumped to two-year high, while August futures for gold at the COMEX finished trading with an increase of 4.7% at 1322.00 US dollars per ounce, showing the biggest one-day rise since September 2013, the gold It is still in demand among investors.
Some economists raise the outlook for the gold price to 1375 dollars to 1300 dollars per ounce. British Referendum Results reinforce the uncertainty global economic outlook and the Fed seems to be in no hurry to increase interest rates in the United States. So, Fed Governor Jerome Powell said on Wednesday that Britain's decision to withdraw from the EU increased the risks to a fragile world economy, and made it clear that the Fed has a more soft policy on raising interest rates.
Today at 17:30 (GMT) performs other representative of the Federal Reserve, Fed President St. Louis, James Bullard, who may also signal a propensity for the Fed to a loose monetary policy.
And it should be a generally positive impact on the US stock markets and quotations of prices for gold, which is the most in demand in times of low interest rates and the turbulence in the financial markets. In the same period of rising interest rates is difficult to compete with the gold earning assets, because the metal does not bring interest income.
At the end of yesterday's trading on the Comex August gold futures closed up 0.7% 1326.90 dollars per troy ounce.
The price of gold is still holding above the 1300.00 level, and demand for it will continue in the short term.
But some market participants expect that the price of gold could reach $ 1,400 an ounce by the end of the year.
To consider the possibility of a short position in gold, you can return only after the markets will calm down after the events in Europe, the Fed once again declares its inclination to tighten monetary policy in the United States.
From the news today also pay attention to the performance of the Bank of England head Mark Carney (15:00 GMT). Mark Carney speech can have a very strong impact not only on the pound, but the entire foreign exchange market, including in the gold price quotes.