Earlier this week, gold updated its local minimum at $1445.5 per ounce, which was followed by the current correction up. Local resistance is at $1472. It is a correctional 38.2% Fibo level for the bearish trend of early November. It can be said with confidence that the trend could change only after breaking the 61.8% Fibo level, which is located around $1490. However, at the moment buyers seem very weak, and in the medium term the bearish trend down to $1430 per ounce is quite likely to continue.
Trade negotiations between the US and China have escalated again, which slightly supports the price of gold. Gao Feng, spokeswoman for the Ministry of Commerce of China, confirmed that the parties are in tight negotiations on the first phase of a trade deal, but also noted that the rollback of goods tariffs is a key to reaching an agreement. Also, China does not want to specify in the contract the exact volume of agricultural products purchases and insists on indicating this item in the preliminary agreement.
An analyst and investor Mark Mobius gave his long-term forecast for the price of gold. In his opinion, it will double in the next 10 years. The analyst called unlimited printing of paper money as the main reason for the growth, while gold will always be in price because of its limited supply. Mobius recommends that investors have up to 10% of physical gold in their investment portfolio.