Comex gold crushed by delayed tariffs on Chinese goods. White house release statement yesterday confirming that new tariffs on Chinese goods which was supposed to kick off this September will not activate by September. US delayed tariffs till December. This sent an extremely positive signal in market as Dow Jones Index recovered 600 points within hours. Dollar Index also fired back from lows. This rise resulted in gold crashed from 1535$ to 1485$ within hours.
Yesterday’s announcement may give hope to stock buyers who were waiting for intervene from US to delay or solve issues with China. White house successfully delayed the recession but main key is resolving the main trade war which seems unlikely. Trump will start his campaign for 2020 re-election very soon so he may have to deliver it to american people.
Even though tariffs are not coming back till December but Trump’s twitter account is still active and we may have new development very soon which could drive Dow Jones to ground again so keep an eye on Trump’s twitter account for any further development.
Yesterday US data was pretty positive which is a surprise considering Fed‘s interest rate cut in a decade. We might see some pressure in US data in upcoming quarter which could strengthen Fed’s interest rate cut decision.
Currently comex gold trading at 1500$. Good support in xauusd chart stands at 1487$. If traders break and sustain below 1487$. Then expect good pressure in xauusd till 1480$- 1470$.
Resistance in comex gold chart stands at 1513$. If trader breaks and sustain above 1513$. Then expect good rise in gold till 1520$- 1527$.
Conclusion: Comex gold trend is flat to weak for now. But stay cautious while selling in this market. Always trade with strict stop loss.
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