Comex gold fired after China devalued its currency. Yuan hit major resistance of 7 against dollar after a decade. This is second step by China since trade war started. First they stopped buying agriculture products from american farmers. This time China devalued its currency to fight additional tariffs imposed on chinese goods by Trump.
Stock market across the world tumbled after China devalued its currency. Dow Jones Index down 250 points from its Friday’s closing. Nifty crashed 180 points , Hang Seng crashed more than 700 points. This resulted a spike in gold , silver prices. Gold fired nearly 15$ & Silver tested more than cents higher from Friday’s closing. Dollar Index also tumbled which resulted more shine in precious metals.
We will need to see how Trump responds to this forex manipulation by China. Market risk is rising once again after 2-3 weeks of pause. We may see more tweets and more retaliation by US president today or in this week. This could result in another episode of tariff retaliation which would slow down world economy and may result in another disaster in already stressed economies created by politicians.
Currently comex gold is trading at 1453$. Good resistance in xauusd chart stands at 1462$. If traders break and sustain above 1462$. Then expect good rise in xauusd till 1470$- 1478$.
Good support in comex gold chart stands at 1440$. If trader breaks and sustain below 1440$. Then expect good pressure in xauusd till 1432$- 1425$.
Conclusion: Currently comex gold trend is positive as market has fired already from its Friday’s lows. Precious metals are rising due to rising risk. So keep an eye on geo political event which is driving gold silver prices. Avoid selling in this market as charts have turned positive once again. Buy in dips would be good idea but strict stop loss is necessary.
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