Whilst gold is up just a modest 3.9% this year, it’s rallied 14.8% since the 2018 low and the trend structure remains bullish. Furthermore, by yesterday’s close the shiny yellow metal had racked up its most bullish 4-day run since June 2016 to underscore its recent pickup of bullish momentum.
The main culprit for gold’s impressive display is thanks to Donald Trump’s latest threat of tariffs on Mexican goods. Not only is gold receiving safe-haven flows, but its move higher has also been supported by a weaker USD. Markets seem wary as to whether Trump can fight a trade war on two fronts (Mexico and China) which has seen the US dollar suffer.
However, stopping just shy of the 2019 high, a solid reversal for the US dollar yesterday has left a large bearish hammer below key resistance. That its occurred whilst being overextended from it upper Keltner band strongly suggests the move is exhausted over the near-term. Therefor we expect prices to retrace or consolidate before gold eventually breaks to new highs.
City Index: Spread Betting, CFD and Forex Trading on 12,000+ global markets including Indices, Shares, Forex and Bitcoin.Click here to find out more..
This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.
From the news and opinion pieces on pages like this to
share discussion forums,
charting tools,
financials,
live share prices and
Level 2,
order book data
If you trade or invest ADVFN has the tools you need to make the right decisions.