The decision of the Bank of China to devalue the yuan, adopted last week, caused a surge of interest in safe assets, including gold. However, this factor itself is almost “won back” and to the fore once again go the usual catalysts. On the one hand, despite the various rumors until actual evidence that the US Federal Reserve in the near future will refrain from raising rates, which may put pressure on the precious metal. On the other, according to a published report on supply and demand from the World Gold Council, in the 2nd quarter demand for the metal fell by 15% compared to Q1 2015 and by 6% in relation to Q2. 2014. All this has led to an increase in net supply, which can also put pressure on the yellow metal.
In the area of gold 1112.58 level to form a support. In recent days, the metal twice tried to pass, but is unable to. Therefore, if the barrier is overcome, can be activated “bears“, leading to an accelerated decline in quotations metal.