Gold
Gold price rise after President Trump tweeted that he is going to impose 25% additional tariff on chinese goods from friday. Dow Jones collapsed and gold price fired yesterday due to this tweet. He single handedly storm the market upside down with single tweet.
If we see in a broad way Trump’s latest tweet may start trade war once again and china may retaliate. China did not comment on if they will retaliate with additional tariffs or not. If China joined US and impose additional tariff on american goods then we may see a series of tariffs which could get things ugly once again between US & China.
This time we may see broader effect in market and gold as market reacted very sharply after president Trump tweet. Dollar Index collapsed with dow jones and no segment was left untouched by tsunami of sellers yesterday in US stock market. Yesterday dow jones moved nearly 700 points in intraday trading session. First from 26500 to 25970 and then from 25970 to 26400. DJIA Index finally settled near 26250 in closing.
These big swings would indicate risk in market and may support gold price in upcoming weeks. Currently comex gold trading at 1282$. Good support in xauusd intraday chart stands at 1275$. If traders break and sustain below 1275$. Then expect good pressure in gold till 1268$- 1260$.
Resistance in xauusd chart stands at 1288$. If traders break and sustain above 1288$. Then expect good rise in this precious metal in intraday session till 1296$- 1302$.
Conclusion: Increasing risk in global markets may support gold price and currently trend is positive on gold chart. Avoid selling and look to buy in dips with stop loss below our support.
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