Gold groped its bottom?

At the end of the last week, gold has fallen in price to a minimum in the last two weeks. The cost of an ounce has dropped to $1,279. Yesterday, May 20, the fall in prices stopped. The cost of gold was fixed at $1280 per ounce. The negative trend was replaced by a symbolic increase in prices by a few hundredths of a percent.
In the French bank BNP Paribas, they believe that by the end of June, the precious metal will be able to play this drop and re-break the $1,300 mark. The forecast of BNP Paribas provides gold rise to $1,305 by June 30, 2019.
First you need to understand why gold has been falling all week. Investors typically view gold as a defensive asset in case of uncertainty in global markets. Gold is starting to buy at the moment when players and analysts doubt the growth prospects of the global economy. Traders often receive money to buy gold from the sale of stocks or currencies.
Over the past week, many US companies have published strong financial statements. In response, investors were taken to buy shares of these companies. As a result, players did not have free money to invest in gold and precious metal quotes went down.
The weakening of the gold helped the dollar. Over the past week, the dollar has been appreciated comparing to other currencies. In such a situation, gold traditionally responds with a decrease.
But there is every reason for the rise in gold prices. The reporting season for US companies is nearing completing. This means that in the near future, investors will have fewer reasons for investing in stocks. Instead, players should pay attention to the failure of trade negotiations between the US and China.
Two states have imposed duties on each other's goods. This creates increased costs for businesses in both countries: thanks to reciprocal duties, the margin can be reduced for both Chinese and American companies. Under current conditions, the demand for defensive assets will increase. That is, gold, analysts are convinced.

The information above cannot be considered as an investment advice and past results do not indicate future performance.
**Investors should have experience and understand the risks of losing all the initial investment.
80% of retail investor accounts lose money when trading CFDs with GMOTrading.

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