Gold
Gold price tested new high of 1344$ yesterday as President Trump threatened another country with tariff. Mexico is new in list after China & India. Trump threatened to impose tariff from Monday if Mexico does not control illegal immigrants. These tariff will kick in just 3 days.
Additionally Trump threatened to increase these tariff every month if Mexico stays idle. Mexico is US’s biggest trade partner and US president is threatening his best trade allies. We wont be surprise if he actually increase tariff every month.
US, China trade war is also a major risk which is crashing dollar index and fueling gold prices. We will have Non farm payroll numbers tomorrow which will give good idea about how jobs markets are fairing in US.
Today we have unemployment claims from US. This will also be an interesting and important data. I am waiting for inflation numbers from US which will show actual effect of trade war between US & China.
US consumers already started feeling the heat as important essential items rates are up 25% due to tariffs on Chinese goods. US is very vulnerable in this trade war, specially US middle class which will take maximum hit. Federal Open Market Committee aka FOMC is also watching situation closely. They may surprise with another surprise rate hike this year if things dont settle down.
Currently gold price is trading at 1332$. Xauusd is down 12$ from its peak due to good short covering. Yesterday xauusd short squeeze all sellers when comex gold made high near 1345$. Good support in xauusd chart stands at 1324$. If traders break and sustain below 1324$. Then expect good pressure in this precious metal till 1317$- 1308$.
Resistance in xauusd chart stands at 1335$. If comex gold break this resistance. Then expect good rise in this precious metal till 1344$- 1351$.
Conclusion: Comex Gold trend is flat to positive for now but I would not advice any buying on these levels.
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