Gold price fired last night as China introduced additional tariffs on US goods yesterday. As discussed in yesterday’s gold prediction, China may impose additional tariffs on US goods. China did exactly the same and market reacted sharply due to additional tariffs.
Dollar Index took a hit and dow jones lost more than 2% last night, Whole gold tested above 1300$. After China’s additional tariff we may see another retaliation by President Trump and it could be severe. Additional tariffs may impact US inflation rate and we may see trade war intensify even more.
President Trump tweeted after china’s tariff announcement that US public need not to worry. But if both countries keep increasing tariff on products then eventually public will have to pay higher price for items. Which might lead to increase inflation in US. Higher inflation may result slower growth and Fed might cut interest rate to save growth instead hiking. Its a hypothetical scenario for now.
Keep an eye on Britain’ avg early earning numbers. It will give an idea about Britain’s growth. For now comex gold prices are trading at 1297.80$. Good support in xauusd chart stands at 1288$. If traders break and sustain below 1288$. Then expect more pressure in this precious metal till 1280$- 1275$ today.
Resistance in comex gold chart stands at 1308$. If traders break and sustain above 1308$. Then expect good rise in xauusd till 1317$- 1327$.
Conclusion: Currently gold price trend is positive so avoid major selling and look to buy in dips. Do not sell on these levels.
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