The price of an ounce of gold is entering a phase of consolidation, a legitimate step following the upward trend of silver metal, which has risen by 24% over a sliding year.
Profit taking coincides with a greater appetite for risk assets, where the major central banks are working to support the global economy and gain investor confidence. As such, the world's largest indices are once again using the same methods as their annual highs, while negative returns are becoming more common on a large number of government benchmarks.
In addition to this broom of central bankers, there is an increasingly persistent theme linked to recovery policies. In particular, China could increase its infrastructure spending, while in Europe, Germany, on the verge of recession, is accelerating its reflection on a fiscal stimulus.
In this context, the easing of commercial tensions, whether ephemere or not, is sufficient to alleviate the fears of operators, who switch to > mode, to the detriment of gold.
Graphically, on a daily basis, gold prices once again failed below the 1550 USD line, a significant resistance that was used as support in 2011, 2012 and 2013. This failure thus acts as a consolidation phase within a fundamental upward trend. This can extend to the 1440 USD zone, a level that would coincide with the 100-day moving average, and would allow buyers to return at a low cost