By the decline of the U.S. Dollar we watch, we watch a rise in gold price. But why it takes place in the market?
The global markets are waiting for the U.S Data which is going to be released soon and the data from Major banks. So we used to see a rise in gold price as the safe heaven for investors, in case the data released is a negative data. In the case data which is going to be released is a positive data, We are going to watch a rise in the U.S. Dollar and a decline in gold price which is going to shock the market.
In the case of Negative data
If the data which we are waiting for is a negative data. For sure it is an issue which lead to, a decline in the U.S. Dollar and a rise in gold price, gold price recorded a rise by 0.89% to reach the level of $1415.20 USD/Ounce of gold in the Spot market, which is an indicator for gold price, it succeeded again to hack over the level of $1400 USD/Ounce of gold, which was a tough resistance for gold price, but gold price could record a rise in the case of negative data as we said before. Gold price next resistance is $1420 USD/Ounce of gold. Then we are going to monitor the level of 1480 as target for gold price to be sure that we are going to hack over 1500 USD/Ounce of gold.
In the case of positive data
If the data that we are waiting for came positive, we will be stuck in the same narrow range of trading. The narrow trading range is between the level of $1380 to the level of 1420 USD/Ounce of gold, some investors like this narrow trading level, because it is more easier to expect the next move of gold price. Gold price in that narrow trading level can make fast profit for investors. Through making a fast trading (technical buying or technical selling) which lead to a gaining profit always, so it could increase easier and faster the process of enlarging funds.