Gold
Gold price dropped as tensions eased between US & China. According to President Trump Mexico and US reached on an agreement regarding illegal immigrants. It means there wont be further tariffs on mexican goods as proposed by White house. There is no official announcement from White house as of now but we might see official announcement very soon.
US is biggest importer of Mexico and this decision eased major tensions between two neighbors. Dow Jones jumped and trading above 26000 since morning. Dollar Index showing good strength which is pushing gold prices down.
We have inflation numbers from US this week which would give an idea how US is performing post tariff era. We might see some spike in inflation as China started passing tariff to consumers. There are many reports suggesting major products in US price has increased more than 25%. American middle class already started pinch of this tariff war.
Inflation numbers would confirm this major theory if inflation is rising or not. Make sure you do not trade major qty when inflation numbers release. Currently comex xauusd trading at 1327$. Good support in this precious metal stands at 1324$. If traders break and sustain below 1324$. Then expect good pressure in comex gold price till 1317$- 1308$.
Resistance in xauusd chart stands at 1338$. If market break and sustain above 1338$. Then expect good rise in xauusd till 1344$- 1349$.
Conclusion: This week’s inflation reports are very important. Even Fomc will be watching inflation reports and they may take surprise action to cut interest rate rather hiking it . If inflation rise too much then Fed has to cut interest rate. For now comex gold trend is weak. Avoid major buying till market is not breaking resistance.
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