Gold
Spot gold price recovered yesterday as increased tariff on Chinese Goods kicks in from yesterday. 10% tariff on Chinese goods will go till 25% by 2019 and this is what market is worried about. Beijing didn’t retaliate yet but we should be seeing some statements from China very soon. DJIA Index fall from 26700 range till 26540 and currently trading at 26585. Dollar Index also took a hit and showed some weakness yesterday which resulted in gold’s gains. Currently spot gold price trading at 1198.50$ and Comex futures trading at 1203$.
- Increased tariff on Chinese would impact many American companies and may result in declining profits to some companies.
- China didn’t took any severe step to counter this immediate sanctions but I expect it wont stop and will impose additional tariff on US goods.
- President Trump already warned China if they impose any severe tariff on US goods there would be consequences.
- We are on verge to see this trade dispute between US and China to turn into full fledged Trade war.
- Both countries are trying to strong armed each other but they will end up harming themselves and global economy only.
- Tomorrow FOMC will announce its monetary policy and most probably increase interest rate by 0.25%.
- Tomorrow’s economic commentary from Fed would be very crucial as they will give their outlook on US economy.
- If US and China dont solve their differences then we may be seeing long term effect on world economy due to this trade war.
A good support in gold chart stands at 1187$. If market break and sustain below this level. Then expect further pressure in xauusd price till 1180$- 1174$.
Good resistance in xauusd chart stands at 1210$. If market break and sustain above our resistance. Then expect good rise in gold till 1219$- 1226$.
Silver
Spot silver price holding well since it opened and currently trading at 14.26$. Comex futures trading at 14.29$. Resistance in silver chart stands at 14.55$. If market break and sustain above our resistance. Then expect good rise in xagusd price till 14.80$- 14.99$.
A good support in silver stands at 14.15$. If market break and sustain below this base. Then expect good pressure till 13.90$- 13.70$.
Crude oil
Nymex Crude oil prices trading higher since it opened. Currently cruising above 72$. A good resistance in oil prices stands at 73.20$. Once traders break and sustain above our resistance. Then expect good rise till 73.90$- 74.60$.
A good support in crude oil prices stands at 71.10$. Once trader hit this spot and sustain below this base. Then expect Nymex oil to test till 70.30$- 69.20$.
Euro
Euro tested above 1.1800 as dollar index was in selling mode yesterday. But it could not sustain on higher levels and crashed. Currently eur/usd trading at 1.1754. A good base in this forex pair stands at 1.1720. If market break and sustain below this level. Then expect more pressure in euro till 1.1700- 1.1650.
Resistance in euro chart stands at 1.1815. If market break and sustain above our resistance. Then expect good rise till 1.1840- 1.1890.
Conclusion
Comex Gold, Silver trend is positive but do not take bigger positions as we have Fed event tomorrow. Crude oil is positive and Euro is flat to weak for now. Keep an eye on our chat room to know if market change trend and receive free signals. Click here to join