Gold’s rising continues

The short-termed rise in Gold continues, as the price broke through the horizontal line, formed by the local highs during the week. Opportunities for a new purchases are available, following the test of the new resistance.

The number of new gold deposits and investment demand such are at record lows. This fact is a serious prerequisite to expect a new bullish trend in precious metal. At the same time investment in gold production continued to increase, which prepares us for the likely increase in the price.

Institutional investors increase their investment in ETF’s and gold futures and shares of mining companies. The concentration of capital in these assets again risen to record levels in an attempt to hedge against the risk of collapse of the stock market.

On the other hand expectations for reform and tax relief in the management of Donald Trump are highly inflated and their possible difficulty or frustration will lead to a serious decline in the price of risky assets, which will send gold prices to new highs.

Here are the possibilities of asset purchases to limit the risk of possible collapse of the policies of US President.

 Varchev Traders

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