On Wednesday, gold started rallying again. For the first time in 2 weeks, the price exceeded $1600/oz. There were several reasons for the rally:
· Poor report on new home sales from the USA
· Worse economic situation in Europe, especially in Greece and Spain .
· Moody’s decision to downgrade the forecast for the credit ratings of Germany, Netherlands and Luxembourg.
All these factors contribute to further economic stimulation, which favors gold prices.
Another factor is the expiration of gold options.
According to Masterforex-V Academy, gold has finally started recovering. Wave (c ) is expected to turn into a 3-wave pattern. Today, the price will probably keep developing 5 of [c] of (c ), which suggests a a break above yesterday’s high.
