Comex Gold price trading on higher side due to trade war risk. Last week gold price fired after our buy gold signal initiated at 1277$. Since then xauusd has gained more than 10$ and precious metals are holding their gains. Currently precious metals are on higher range as risk is rising every day due to latest ban on Huawei by Google. Google shares also tanked last week as it will also effect google bottom line. White house is not showing any softness on trade war and China did not retaliate with any additional tariffs.
US farmers are already started facing heat of China’s actions. President Trump gave them a temporary bailout but market believe its not enough to stay them afloat. Temporary aid is good but we dont know if China would start buying from US farmers even if trade dispute is solved. This could hurt US farming industry very hard and current trade war could do irreversible damage to US farmers.
President Trump did not show any willingness to solve trade war crisis and willing to take more risk in this. I feel its US consumers who will suffer when Chinese company start bypassing costs to consumers. Maybe this is the reason FOMC not showing any hawking stance despite good jobs and growth data from US. Current trade war effect US more than China. We should start seeing slow growth very soon. President Trump has to solve this before year end as he will be running next year for office. So he needs a win under his belt before going to election in 2020.
Currently xauusd price is trading at 1286.50$. Good support in comex gold chart stands at 1278$. If traders break and sustain below 1278$. Then expect good pressure in xauusd till 1270$- 1265$.
Resistance in comex gold chart stands at 1293$. If traders break and sustain above 1293$. Then expect good rise in this precious metal till 1299$- 1307$.
Conclusion: Currently gold price trend is positive. So avoid major selling. Look to buy in dips.
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