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    XAU/USD: risk appetite is growing on 15.02.2016

    Although markets did not receive clear signals from the speech by Janet Yellen about probability of the interest rate increase in the USA at the US Fed meeting in March, investors has been selling gold amid increasing risk appetite. American and European stock indices had grown last Friday. DJIA increased by 2%, StoxxEurope600 – by 2.9%.

    On Monday Friday’s trend has intensified. Stock indices have been growing since opening of the trading day today, while pressure on gold prices is increasing.

    Since the beginning of this month the price of gold has rapidly grown, exceeding the level of 1260.00 USD per ounce. Now the price of gold returned to the level of the previous year. The rise amounted to 11%, and since the beginning of the year the rise was 15%.

    Although investors’ sentiments improved last Friday, we can consider current decline in gold prices as a correction caused by the fact that the currency has been overbought since the beginning of the year.

    Pessimistic sentiments prevail in the market due to poor state of the global economy. Statement of Janet Yellen that the US Fed had considered probability of introducing negative interest rate increased investors’ concern although later this idea was rejected.

    On Thursday when the price of gold broke down the level of 1260.00, financial markets fell to many-year lows and trading volumes were the second largest this year.

    European stock indices have been growing since the opening session today along with the rise in the Japanese index Nikkey, which has grown by 7%. Index StoxxEurope600 has grown by 2.7% at the beginning of European session. The situation is favourable for the sellers of gold. If gold continues to decline this week, the price can reach key support level of 1130.00 USD per ounce.

    Amid disappointing European economic indicators and uncertainty created by Mrs. Yellen’s speech last week, investors are preparing for the meeting of ECB in March. It is possible that ECB will adopt decisive measures of monetary policy easing in Eurozone. In this case, European stock indices will increase, while the price of Euro and gold will drop.

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