Please, note-Our Trading position for gold and silver is active in our portfolio.
Trump tweeted: “Good things are happening at China Trade Talk Meeting. Warmer feelings than in the recent past, more like the Old Days. I will be meeting with the Vice Premier today. All would like to see something significant happen!”
The announcement of a possible partial trade deal between the U.S. and China boosted investors' risk appetite which drove the stock market higher and pressured precious metals complex.
The Interest rate cuts has played a major role in the steep incline which we have witnessed in the precious metals complex however right now markets are pricing in a lesser chance of a rate cut in October, with the latest estimates from the FedWatch Tool projecting a 67% chance of a cut versus the 87% chance just a couple of days ago.
Old comments-You need to keep in mind that at the moment it seems that markets have gotten ahead of themselves and pricing in a more than 80% chance of looser U.S. however if the fed won't cut rates or even if easing will get delayed then it will turn to be negative for the entire precious metals space.
Britain and the EU have fixed there next meeting on the Brexit deal which also helped to boost investors' risk appetite and brought positivity back into the market.
Old comments-Technical levels to watch out for, Advises and recommendation from Goldsilveranalyst
Although we understand all the factors mentioned which are supporting the price of Gold are still there including continuous fall in yields, geopolitical risks, fears of the industrial economy and notions of Quantitative easing coming from the major central banks of the world but despite the momentum which we are witnessing,we have doubts about the sustainability of Gold's surge. Prices moved up substantially, and even though gold prices can reach $1585, we believe investors should lock in some profit at these levels.
Gold has had a great run over the last year, up 17%. It has been a perfect storm of sorts for Gold , especially on the interest-rate front. With long-term interest rates declining globally, Gold has been an attractive alternative to debt,"
Gold is an excellent alternative to any risk, including economic instability and geopolitical tensions. However, at these levels, Gold is just too expensive. The two metals we recommend considering right now are platinum and silver . Both are historically quite cheap versus Gold , and in our opinion, may offer more upside potential should gold keep grinding higher,".
"The price of platinum has mostly traded above the price of Gold , but that is not the case today. For those looking for an alternative to Gold , we recommend consideration of platinum and silver ,"
Summary-our macro research report suggests that the room for the equity market and the DXY to move higher from the level they are currently at- still exist,investors needs to be aware and cautioned what media is portraying and should research the market on there own,or should take the advise by the seasoned analysts however there shouldn't be any conflict of interest involved with in the advise itself. Even though the possibility for the equity market to grow even higher still exist we recommend investors to stay away from the stock indices as the reward doesn't worth the risk in itself. Our independent bias towards the precious metals complex remains until gold breaks above $1,525 an ounce as breaking above would support more investors and traders to long gold with heavy conviction. Until that happens our conviction will remain within the precious metal sector.
Data to watch
Next week’s biggest data release will be the U.S. retail sales on Wednesday, which are estimated to come in at 0.3% in September. The U.S. Beige book is also scheduled for publication on Wednesday.
“Retail sales are a key measure of optimism. Any weakness there should help gold .
Other key data sets to watch include the NY Empire State manufacturing index out on Tuesday and Thursday’s slate of numbers such as U.S. housing data, industrial production, and the Philly Fed manufacturing index.