As we are writing this report gold
is trading at $1280 per ounce however the white metal is still hovering around entry level which is at $15.Today we have seen gold
prices to reach up to $1290 however soon after the selling pressure drag the precious metal down. The moderate climb which we have witnessed in the precious metal sector was mostly caused by the surprise developments on the U.S.-China trade front that saw President Trump threaten new tariffs on imported Chinese products. Trump tweeted that some degree of a trade deal with China needs to happen by the end of this week, or new tariffs go into effect. The geopolitical uncertainty that includes the potential U.S.-China trade war escalation and also increased U.S.-Iran tensions are the major reason which caused the short term upwards price movement in P. Ms
but really it should have uplift the yellow metal prices to at least $1300 by now. The recovery we which have witnessed in the U.S stock indexes was mostly due to trump tweet where he tweeted that China is coming to Washington this week to reach an agreement with the U.S on trade. However, the market participants are still very skeptical about the trade deal and the situation is still very much up in the air.
We have already informed you that China's economy has been affected the most in this ongoing U.S-China trade war and today we have seen another china report on this where China reported that it's exports dropped by 2.7% in April Y.O.Y compared to 14.2% gain in March. The U.S imposed tariffs on Chinese imports has damaged the Chinese economy in a significant manner.
our current bias-The bears are in the full control and have the overall technical advantage in gold
market overall we believe the boring price movement which we have witnessed from weeks in the precious metal sector has already ended and the serious technical damage in P. Ms
charts has already inflicted however the next breakdown could be more severe enough.t