The price of gold fell today, Wednesday, in the European market, extending its losses for the second day in a row, due to the rise in risk appetite in the financial markets, with optimism about the prospects for global economic growth, which is reflected in the broad rise in global stock markets.
The price of gold ended yesterday's trading lower by 0.7%, in the first loss in four days, as a result of correction and profit-taking operations, after it recorded, earlier in trading, the highest level in two months at 1220.01 dollars per ounce.
Risk appetite increased in the financial markets in light of optimism about the prospects for global economic growth, with major global companies recording profits better than expectations, in addition to increased demand around the world, which was reflected in the rise in Japan’s exports in December for the first time in 15 months.
And increased market optimism, as US President Donald Trump began providing more details about his financial and economic policies, including setting incentives for companies and reducing taxes to attract new factories in the United States.
The Japanese market indices recorded a strong rise during today's trading, in light of the recovery of the exports sector, as European shares started today's session on the rise, and the futures of the Standard & Poor's 500 Index continued its strong rise after the index rose yesterday on Wall Street by about 0.7% to its highest level ever. .
As for gold holdings in the SPDR Gold Trust Fund, which is the largest global index fund backed by gold, it fell yesterday by 2.96 metric tons, in the second daily decline in a row, to a total of 804.11 metric tons, the lowest level since April 25, 2016.
Gold price and technical outlook:
The price of gold is trading at the level of 1197.30, at the support level, in conjunction with the presence of the Fibo line 23 on the four-hour time frame.
Trading is now taking place below the level of the average moving indicator line, and both the MACD and the Stochastic indicator show a negative crossover towards the bearish trend on the four-hour time frame.
Therefore, the price is expected to continue the bearish trend, targeting the level of 1190.00, then the level of 1183.60 in conjunction with the presence of the Fibo line 38