Today's announcement of Donald Trump about the imposing new tariffs on goods imported from Mexico has sent shockwaves across a wide spectrum of financial markets. The U.S. stock indexes paid a heavy price due to trump tweet.we have witnessed a severe decline of over 335 points in dow jones however the NASDAQ composite
has suffered the largest percentage drawdown due to this news. And as expected gold
behaved as a safe haven asset on this economic turmoiled news and made a recovery of more than $17, you will need to know that at the moment bond yields are trading at the there lowest level in 2 years. most economist and analyst(including us)have agreed that if Trump will impose the tariff on Mexico than this could have a more significant impact
than the ongoing U.S. China trade war.
BUY BUY AND BUY OR WAIT?
we understand that there is a growing optimism within the market participants about gold
at the moment. The yellow metal has also broken it's $1300 psychological resistance and currently trading at 1304$ per ounce.so what do we suggest? personally having a long term trading position in the portfolio we are not making any change within our existing position however you'll need to understand that the yellow metal could move higher once the market will re-open,so if you want to trade and buy for the short term that's fine but keep in mind our short bias is still very strong towards precious metal sector for the long term. we believe To confirm the breakout, we would like to see silver
prices move higher(very crucial)