Gold

Comex gold rising with uncertainty in market. Dow Jones crashed nearly 1500 points from its peak of 27300 odd levels to 25800. This vertical crash triggered this Monday when China devalued its currency and president trump didn’t waste time to login his twitter and criticized it.

Market is almost certain we will see more counter measures from US apart from upcoming 10% tariff hike from next week. Additional tariff will apply mostly to mobile phones, electronics & gaming console. This could hit Apple, Google & Microsoft badly as consumer will pay more for existing products.

US economy is clearly in trouble since dollar index is losing its shine & federal reserve already announced a rate hike after a decade. This clearly shows how fed is looking to market & economy. Rising unemployment claims & non farm is a major concern to market. Most importantly Trump’s denial is worrying to many analysts including me. He is continuously boosting how great economy is doing. No doubt US stock market is on all time high & unemployment rate is on all time low. BUT and a big BUT, Economy started showing cracks which commander in chief is ignoring completely.

This ignorance could be dangerous for US economy and it could be a catalyst for gold prices in upcoming weeks. We already seen nearly 200$+ move from lows. The way Dow Jones Index is falling we may see new lifetime high in gold within months.

For now comex gold is trading at 1488$. Good support in xauusd chart stands at 1474$. If trader breaks and sustain below 1474$. Then expect good pressure in comex gold till 1465$- 1460$.

Resistance in comex gold stands at 1492$. Once traders take this resistance out and sustain above 1492$. Then expect good rise in gold till 1499$- 1507$. Even more fire in gold not ruled out.

Conclusion: Comex Gold trend is no doubt positive but stay cautious on higher level buying. Maintain a very strict stop loss in every position.

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By marafat