The price of gold in European currency fell -4% from a recent historic high. Now the yellow precious metal has entered the consolidation phase. However, the upward trend in the gold market continues.
For the first time since August 22, 2019, the world price of gold fell below $ 1,500 per ounce. Yesterday, gold was trading at $ 1,493 per ounce, which corresponds to 1,353 euros. It is worth recalling that on September 3, the price of gold reached 1409.99 euros (Forex), which became a new historical record of value.
The fact that after a prolonged rise in prices the consolidation phase sets in is quite normal. On a growing trend, price reduction is an ideal chance to increase investment.
In the short term, the next meeting of the ECB will influence the further pricing of gold. If the European Central Bank continues to pursue a soft monetary policy, the European currency will continue to decline against the US dollar. In this case, the cost of precious metals in euros will increase.
In the coming days, the United States will receive new statistics on the country's economy. In particular, the inflation rate will become known. Analysts look forward to the next Fed interest rate decision. In their view, the Fed will lower rates by another 25 basis points. In the US futures market, the likelihood of such a scenario is estimated at 93.5%.
The news background around the trade conflict between the US and China has noticeably subsided. As before, analysts believe that negotiations between the two countries will continue in early October. They should be held in Washington. However, the experience of the past months shows that one cannot be 100% confident in this matter. Everything can change very quickly. You can be sure of only one thing: Donald Trump will definitely publish his next Tweet before starting negotiations.