Gold
Gold price waiting for US GDP numbers. We have prelim quarterly GDP numbers today from US today. Yesterday we had major event in market as Robert Mueller gave an unexpected appearance and spill some beans on Russian probe investigations. Even though he cleared that charging US president is not an option but his statement crushed Dow Jones very hard. DJIA Index tested below 25000 and tested 24980 before recovering to 25120.
Currently gold price is trading flat after making lows near 1276$. Since yesterday we are trading in 4-5$ range and entire precious metals pack trading in a very narrow range. Today’s GDP numbers would decide the fate of precious metals. It will give an idea if current trade war between US & China may effect numbers. If GDP numbers are worse than expectations then expect gold price to take a jump and test highs. However if GDP numbers are in line then expect flat to negative gold price today.
GDP numbers would also give an idea about how Fed may react in its next meeting. Fed is still not showing any sign to raise interest rate. Lets see how does GDP numbers fares today. Current US, China trade war may affect today’s numbers. We may also need to discount some weakness in next GDP numbers due to ongoing trade war. White house still not soften its stance on China’s matter. China did not retaliate since Huawei ban.
Despite president Trump presenting this as a victory, US farmers started feeling pressure. China stopped buying soya bean from US and White house had to give them bailout. US consumer will also start feeling heat as inflation is set to rise. China started passing tariffs to consumer and now US public will pay for additional tariffs
Currently comex gold price trading at 1278$. Good support in xauusd chart at 1270$. If traders break and sustain below 1270$. Then expect good pressure in xauusd till 1262$- 1255$.
Resistance in comex gold chart stands at 1286$. If traders break and sustain above 1286$. Then expect good rise in xauusd till 1292$- 1299$.
Conclusion: Currently Comex gold trend is flat to weak for now. Wait for US GDP numbers before initiating any major trade.
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