Gold at annual highs and this is not the limit

Gold completes the week with impressive growth, for two days the metal has risen in price by 20 dollars, while today the prices have updated the annual maximum, having risen above the 1.1350 mark.
The main reason in geopolitics: The US is preparing a new package of even more stringent sanctions against North Korea, while both sides are not shy in tough expressions and threats, thereby complicating their own way to a peaceful and quick settlement of the problem. Recall that US President Donald Trump recently said North Korea behaves badly, so it must be punished, including with the help of military strikes, if necessary. In this situation, investors prefer to withdraw funds to defensive assets and gold is the first in this list.
The second factor pushing gold upwards is the dollar. The American currency is rapidly becoming cheaper across the entire spectrum of the market. The US economy will have to pay dearly for the consequences of Hurricane Harvey, to which, probably, the consequences of Irma will also be added. In these conditions, the Fed is likely to postpone the increase in interest rates – such considerations against the background of risk aversion lead to a decrease in yields on state bonds. US bonds and increase pressure on the dollar. Gold, as, indeed, other assets of the commodity segment, depends heavily on the value of the American currency.
From a technical point of view, the nearest resistance is fixed in the area of ​​1360, followed by a maximum of 2016 at 1375. According to analysts Marcus Garvey of ICBC Standard Bank, gold has every chance to reach this mark, the question is only when it will happen. Geopolitical uncertainty, weak inflation in the US and the rest of the developed world and straightening the yield curve certainly raise the attractiveness of gold as a safe asset. However, according to the expert, the market is now skewed towards long positions: according to Comex, the cumulative open interest in gold futures for the past month increased by 24%, so the price increase will be preceded by some correction.

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