This week the gold has been under the strong pressure of the Euro based on the results from the first round of elections in France. Investors have got some confidence in the future of the EU and the victory of the loyal-to-the-EU candidate Emmanuel Macron. The Euro has considerably strengthened against most currencies and investors became more active on the market towards risker, more profitable assets.
The only thing that hasn't allowed the gold to lose much in price is a slowdown in the US economy, an uncertainty in the Fed increasing the interest rate, as well as a lack of interest in a strong dollar from the government and the U.S President D. Trump. The rates continue in the frames of a downward trend, which is becoming more intense despite the fact that geopolitical tensions and uncertainty started to subside amid good news from the EU, and the situation with military conflicts which did not worsen.
It should be noted that despite the increased volume of gold mining by some mining companies, long-term forecasts say there might be an inrease in the yellow metal's value in the future. According to BMI research, by 2020 the price for gold will be $1500, but considering the probability of military conflicts and geopolitical tensions in the world, it can be sooner. On this basis, we can say that at this moment there are no preconditions for the end of the upward trend, which has lasted from the end of 2016, although the support line is now in danger to be shifted down.
The MACD oscillator shows the signal to open deals on the trend. We can also be oriented with Points of entry at $1270 and $1262.5. However, at the moment the deals to Buy are the best solution, confirmed by the MACD: they are likely to be most effective in the short- and long-term perspective.
