Gold prices unable to capitalize on U.S. dollar weakness
Normally, gold prices move inversely to the U.S. dollar, heading higher as the greenback moves lower in forex trading. However, this has not been the case this morning. Gold prices have been relatively flat, and even though the U.S. dollar is showing weakness in currency trading, gold remains down.
And it doesn’t look as though is seriously going to get a real boost anytime soon. FX Street looks at the forecast for gold prices:
"In terms of technical trends, the prospects for gold look strong, but the underlying fundamentals look weak," says a note from Barclays Capital in London, pointing to a third year of falling jewelry demand in the face of record-high gold prices.
The conditions to see a gold rally are fairly good, with inflation expected and U.S. dollar weakness almost guaranteed. However, it isn’t happening. Gold still appears to be correcting from its recent record highs.
See Also
- Looking for Trends in Currency Trading
Forex trading on the currency market
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