Weekly gold market review 29.10.14
It is time to summarize the preliminary results for October. It turned out that despite the small decline in the price of gold at the beginning of the month, by the end of October as a whole there was clearly visible growth of it. The main factors were the decline in the U.S dollar, the increased interest in gold in India, import and consumption of gold in China, as well as the positive forecasts of many experts of the financial market and investments.
So, starting from October 8, when gold prices have stabilized at low levels of resistance of $ 1,219, they only rose by the end of the month. One of the first impulses to that was the entry of Chinese investors in the gold market.
Already according to data for 10 and 17 October, the price of gold rose to the high level. First it was $ 1,230, and then it passed over the strong resistance level of $ 1,250, having reached its maximum of $ 1,254.
On October 23, the precious metals markets fell under the influence of the growth of the US dollar and the stock market. However, in the run-up to the referendum in Switzerland in November, prices and physical demand for precious metals have received the support.
Thus, the price of gold tried to gain a foothold above the support level of $ 1,235 per ounce. Previously it was a strong resistance level. On October 23, the prices were at a level of $ 1,239. Experts predicted the growth to the strong resistance level of $ 1,270. But the activity was restrained in anticipation of the October meeting of the US Federal Reserve.
October 27 became an unfavorable period for the gold market. After the decline in gold prices to support level of $ 1,226 , the market continued to keep the resistance level of $ 1, 230.
At the same time, financial market experts discuss the Swiss referendum on gold. According to approximate data, about 44% of the respondents voted for the increase of the gold reserves of the Swiss central bank. Analysts said that the referendum could favorably affect the price of gold, as it would contribute to the growth of gold demand.
China also plays an important role in support of gold. Though the consumption of the yellow metal rose only by 3%, it is a good indicator for the gold market. But the average growth of the gold consumption in the past few years is more than 10%. In addition, the festivals in India continue to support the gold price, when gold sales increased by 25%.
It is obvious that now gold is in the steady position. The customers of the Emgoldex company already enjoy this situation, they buy gold in the reliable and advantageous online store of the company!
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Category: Gold news Publication date: 2014-10-29 14:50
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