After Gold price yesterday recorded a rise by an average of 1%, there were some expectation that gold price will continue to rise until it return back to its normal rate at the level of $ 1600 USD/Ounce, but from technical aspect. Over the Gold market we used to watch a decline after any rise i the market,so we can say gaining profit on the short term return to take place in the Market back again.
Issues support Gold price decline
There are some supportive issues for the decline of gold price in the trading session today, one of it and we can consider a major factor in the decline of gold price, is the rise of the US dollar VS the Euro after rumours about the Euro bank that, If there is a strong commitment from the Reserve Bank to continue easing procedures, so when we watch a rise in the US dollar investors escape to it and they works on selling gold, for sure it lead to a decline in Gold price.
other factor behind the decline of gold price is the Gaining profit which return back again in the market to take place, we can see on the short term that investors head to cover their lose by the short term gaining profit, but there is burgin hunter are heading to the market ti bug gold and get out of the market, to sell gold after the next rise for gold price.
US dollar and Euro will had a word, we watch now war currency between Euro and US dollar, it may came for the side of Gold price, if a fluctuate in the currencies continue, but we could watch a decline in gold price if the US dollar continue to rise, some analysts expect that the US finance will watch an improvement so the Gold price will decline, but i expect it will take more time.