In the long term, the price of gold tends to grow due to several causes. Amid a fall in bond yields, the largest pension funds are seeking for alternative assets to invest in.
It should also be noted that a growth in US stock markets towards new highs raises concerns among investors and results in their decision to diversify risks.
The price of gold gains support from the Fed wait-and-see attitude regarding interest rate hikes. At the same time, political risk should not be underestimated as well. US presidential election is due in November, and now there is still a lot of uncertainty surrounding that.
Support and resistance
The nearest support level is at 1097.66.
The nearest resistance level is at 1112.97.
Long positions can be opened from the level of 1340.00 with the target at 1350.00 and stop-loss at 1333.00.