Gold
Gold price continuing its mighty rise and took another leap from 1312$ to 1325$ yesterday. Gold driving forces are weak dollar index and weak dow jones. Growth concern and trade war between US & China still dragging stock markets which is supporting gold price. Many market order and market stop was triggered when xauusd broke 1318$. Gold short squeezed all sellers last night
Yesterday US manufacturing data came weaker than expected which raised issue of growth in US. We still did not see major numbers which shows any slowdown in US economy. But this time we need to see inflation numbers. US might face higher inflation this time as prices are ripe for a rise. US consumers will start feeling Trump’s tariffs in upcoming weeks.
Eventually its american middle class who will pay another tax as tariff to US govt. China already started passing cost to consumers. There is no progress on talks and both govts are not showing any softness.
China released their white paper yesterday. White paper is kinda official statement which Chinese govt issue to public. It has all the information regarding China’s stand on GDP and other important stuff. In their white paper China mentioned they dont want trade war but wont hesitate to participate if US forces. China cleared their intention to fight back hard if white house try to strong arm them.
This week we also have Non farm payroll data which is extremely important. It will give clear picture of jobs markets in US. If numbers fall then we may have serious issue and it could support xauusd even more.
Currently comex gold trading at 1326$. Good support in xauusd chart stands at 1317$. If traders break and sustain below 1317$. Then expect good pressure in comex gold till 1308$- 1300$.
Resistance in xauusd chart stands at 1333$. If traders break and sustain above 1333$ then expect good rise in xauusd till 1340$- 1348$.
Conclusion: Comex gold trend is positive for now but avoid selling for now. Buyers should also wait for good dip before taking any fresh position.
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