Gold

Comex gold fired as it opened yesterday and tested above 1555$ within couple of hours. It was later in a day xauusd cooled off and settled near 1530$ area. This is clearly G7 meetings effect on gold prices. Trump stated that he regret not imposing additional tariffs on China. This did not go well with market and gold fired hard.

China did not reacted on Trump statement as they may have got immunity from his statements every now and then. Market is still nervous as last Friday China slapped tariffs on american soya bean which sent tremors in Dow Jones and gave big push to precious metals. Additional tariffs on soya bean will hurt Trump’s voting population and it may cause a damage to his re election. He have to sort this out before election.

China seems not in mode to slow down as this is their 2nd step in trade war. First China devalued Yuan against dollar. Then this additional tariffs which would hurt american farmers directly. Despite strong dollar index dow jones did not hold and crashed nearly 700 points from its highest point.

Trump may act this week on these new additional tariffs which came despite white house delayed additional tariffs on Chinese goods. Trump even criticized Fed chairman to not doing his bit to contribute. Many democrats criticized Trump for this. Now we have to see what Trump does once he is back from G7 meetings.

Currently gold is trading at 1533$. Good support in xauusd chart stands at 1520$. If trader breaks and sustain below 1520$. Then expect mild correction in gold till 1510$- 1501$.

Resistance in gold chart stands at 1540$. If trader breaks and sustain above 1540$. Then expect good rise in xauusd till 1550$- 1560$.

Conclusion: Comex gold trend is positive for now. Avoid selling precious metals for now.

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By marafat