Trade Idea for 17th April – Short Gold
There are two fundamental reasons for gold’s fall. The first one is the global deflationary processes. Despite the record-low interest rates and monetary policy measures taken by the central banks of the USA, Japan and many Eurozone countries, economic activity remains weak due to reduced consumption. The second reason is the decision made by the Chicago Mercantile Еxchange to increase the requirements for trading gold, silver and CFDs on other precious metals, which went into effect yesterday.
In the short term, the price of the precious metal is likely to make a slight upward movement, which will be absolutely corrective in its nature. As for the mid-term, it remains bearish because of the global economy, which is under deflationary pressure. Thus gold is losing ground because of its status as safe haven against inflation.
Full Article & Trade Set-Up
There are two fundamental reasons for gold’s fall. The first one is the global deflationary processes. Despite the record-low interest rates and monetary policy measures taken by the central banks of the USA, Japan and many Eurozone countries, economic activity remains weak due to reduced consumption. The second reason is the decision made by the Chicago Mercantile Еxchange to increase the requirements for trading gold, silver and CFDs on other precious metals, which went into effect yesterday.
In the short term, the price of the precious metal is likely to make a slight upward movement, which will be absolutely corrective in its nature. As for the mid-term, it remains bearish because of the global economy, which is under deflationary pressure. Thus gold is losing ground because of its status as safe haven against inflation.
Full Article & Trade Set-Up