Nowadays the price of GOLD is unstable and it's quite a risky and highly volatile trading tool. At the moment the price of gold is around $1181–$1185 compared to $1340 just six months ago. The rates continue to be carried out in the frames of the downtrend. Currently investors prefer to invest in the dollar and securities which demonstrate good levels of profit. Gold, in turn, falls in price due to a falling demand. However, there are no preconditions for further falling.
Amid political and economic uncertainty in the United States, due to the fact that Donald Trump began to realize his aggressive protectionist policy on all clauses of his election program from his first day as President. This raises serious worries for investors. Therefore, it is expected that they will not take risks and would choose a more stable tool for investment, which is the default metals. In this scenario the gold can quickly regain its lost levels.
In this situation the most effective action would be opening long deals (to buy). It’s quite possible that the gold will achieve the level of $1200 or more though it does not mean we would have a trend reversal in the near future. We can only expect an increase of the prices and the rates being closer to the line of resistance. The Stochastics oscillator shows the right decision: in middle-term trading the most effective can be long deals.
