Gold
Comex Gold price fired more than 30$ in a trading session. Federal Reserve Chairman Jerome Powell said ” Trade war with China and other countries have contributed to slower growth in US economy, This also posses slower growth in other major economies. Fed is prepared to act and it may take any step to cater growth.
Interestingly he did not influenced by higher spending and other positive US data and focused on jobs data. I always says in my forecast that jobs are nerve of US economy and these are most important data to measure how US economy is doing. Powell statement clearly shows we are looking for a interest rate cut in July or August.
As mentioned by FOMC chairman trade war with China is a major concern and its far from resolved. Now we know how big trade war risk is. President Trump has to solve this trade war else we might need more than a small rate cut from Fed.
Powell’s speech sent Dow Jones to test new lifetime high and dollar index declined which also pushed gold prices through the roof. Currently even Fed is sensing risk of slower growth which is pushing gold price higher. SO stay cautious on sell side if you are looking for major sell.
Currently comex gold price trading at 1421$. Good support in xauusd chart stands at 1412$. If traders break and sustain below 1412$. Then expect good pressure in xauusd till 1403$- 1392$.
Resistance in comex gold chart stands at 1428$. If traders break and sustain above 1428$. Then expect good rise in xauusd till 1436$- 1444$.
Conclusion: Comex Gold trend is flat to positive for now but stay cautious on higher levels. I would advice not to buy on higher levels and take a trade with extremely strict stop loss.
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