Masterforex-V World Academy analysts say, the pro-Russian separatists announced a confident victory on the pseudo referendum on self-government the eastern regions of Ukraine. Gold prices as low-risk assets grow in times of political and economic instability.
Investors are comfortable with the Ukrainian crisis, believing that worst-case scenarios come true, - say the Forex experts. The more localized crisis is, the greater the pressure on the price of gold.
Gold imports in India, the second- largest in the world by its consumption in April fell by 74 percent compared with last year - to $ 1.76 billion - because of restrictions on the purchase imposed by the government. In China, the world's largest consumer of gold, the price of $ 3 per ounce is above the spot prices in London compared to more than $ 20 early this year.
Gold prices are near the resistance at 1296 dollars per ounce.
"The negative trend was observed on gold all last week ", - told the analysts of Traders Union. Its quotes are kept on getting more under pressure from the data, marking the recovery of Britain, the Eurozone and the United States of America, as well as the reducing the FRS program acquisitions. In addition, a negative factor for metal was made by Vladimir Putin's recommendation to postpone the referendum in Lugansk and Donetsk regions.
In view of this, gold failed to break resistance at 1315 dollars per ounce, which was followed by decrease to 1285, - says the experts of Forex. Later the metal stabilized between this mark and resistance at 1,296 dollars per ounce. The risks of gold falling beyond 1270 dollars per ounce were increased by bullish momentum weakening.
On May, 12th the metal was bought after a decline to the level of 1280 dollars per ounce during the Asian session. As a result its quotes are in the area of resistance at 1296 dollars per ounce. The breakdown level and rise beyond the 13th figure, -say Traders Union's analysts, - are able to relieve the pressure. However, while the precious metal is held below the 1308 dollars per ounce, the attempts to form the uptrend are beneficial for short positions opening on it
