Comex gold price sustaining well above 1400$. All thanks to rising tensions between Iran & US. Pressure in dollar index & rising crude oil price due to conflict between Iran & US are main drivers of gold price. Last week Iran shot US drone and Trump did not like that very much. He even warned Iran and threaten once again. Its possible we may see a full blown war very soon. I believe US would take appropriate action after G-20 meet is over.
This weekend Xi Jinping & Donald Trump will meet. We may have trade war solution this time as both countries want to resolve the issue at the earliest. All depends on how well China & US manage to draft an agreement this time. It is possible that we may have no deal by weekend and Trump may go ahead to impose further tariffs on chinese goods. If this time White house impose tariffs on China, I am sure China will retaliate hard.
FOMC chairman already gave a caution signal in his last statement. We have one more statement due from chairman this week. However we are certain there wont be any further rate hike this year. In fact we may see a rate cut this year as market continues to worry about looming trade war between Beijing & Washington. Next week we have crucial Non farm payroll numbers. This would determine the course of interest rate in 2019. If non farm fails then Fed will have no choice but to cut interest rate this year.
Currently xauusd price trading at 1405$. Good support in comex gold chart stands at 1390$. If traders break and sustain below 1390$. Then expect good pressure in xauusd till 1382$- 1375$.
Resistance in comex gold chart stands at 1413$. This is a crucial level for buyers & sellers. If market breach this hurdle and manage to sustain above 1413$. Then expect more power in xauusd till 1422$- 1430$.
Conclusion: Currently geo political risk is driving gold price higher. So keep an eye on events which are driving gold price. Take extra cautious approach as market is highly volatile.
For crude oil & mcx intraday levels watch my youtube video here