After reaching the highest level since August 2016 at $1357 per troy ounce in early September this year, the price of yellow metal has suffered steady selloffs. Gold is now down more than 6.5 percent from its September peak and down for a fourth consecutive week.
We at FxWirePro forecasted that gold price would falter towards $1260 area and selling pressure might push it towards $1256 per troy ounce area in mid-September when gold was trading around $1309 per troy ounce. However, our latest calculation suggests that as the Fed maintained its stance of a hike in December at the September meeting and as the U.S. Congress has started to focus on tax cuts and reforms, the bears have strengthened their position and looking to push gold price beyond our initial stipulated target of $1260 and target $1160 per troy ounce area.
As of now, this is not our base case but looking at the development, we would like to urge our readers to not to book all the profits but 50 percent of the total. And continue with the rest and the bears push ahead.
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