{"id":156093,"date":"2019-09-25T10:45:21","date_gmt":"2019-09-25T14:45:21","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=156093"},"modified":"2019-09-25T07:24:08","modified_gmt":"2019-09-25T11:24:08","slug":"xaurub-analysis-further-rate-cuts-could-increase-attractiveness-of-precious-metals","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/xaurub-analysis-further-rate-cuts-could-increase-attractiveness-of-precious-metals\/","title":{"rendered":"XAURUB Analysis: Further rate cuts could increase attractiveness of precious metals"},"content":{"rendered":"
September 25, 2019<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

Further rate cuts could increase the attractiveness of precious metals<\/strong><\/p>\n

In this review, we suggest to take into consideration a personal composite instrument (PCI) & XAURUB. It reflects the dynamics of changes in the value of gold VS Russian ruble. Will the XAURUB quotations<\/a> grow?<\/p><\/blockquote>\n

Such movement indicates gold price increase and Russian ruble decline. The main factors behind the rise in price of precious metals are the softening of the monetary policy of the world’s leading central banks against the backdrop of signs of a slowdown in global economic growth. So, the Fed rate reduction is expected at the next meeting on October 30, 2019. Meanwhile, now it is 2%, which is lower than current inflation in the US 2.4% in annual terms. In addition, the demand for gold is supported by global risks in the form of a trade war between China and the USA, the aggravation of the situation around Iran, as well as the problems of the budget crisis in Italy and the British exit from the EU. In turn, the weakening of the Russian ruble may occur after the end of the period for the payment of taxes or in the event of a decrease in world oil prices. In Russian exports, the share of hydrocarbons reaches 70%.<\/p>\n

\"XAURUB\"<\/p>\n

On the daily timeframe XAURUB: D1<\/b> could not break the support line of the uptrend as part of the correction. Now the upward movement may resume. Various technical analysis indicators have generated uptrend signals. Further growth of quotations is possible in the case of increasing global risks and a slowdown in the global economy.<\/p>\n