-- Published: Monday, 13 May 2019 | Print | Disqus
Traders will prefer to be long gold than short gold. I was hoping that sense will prevail in Trump and that a trade deal would be done with China on the weekend. Trump tweets suggest that he has refused to budge and will not budge for the rest of the his term which ends in January 2021.
It is very difficult to predict the real long term impact of the US-China trade on China and rest of the world. American economy will gain and continue to create more and more jobs in a so called trade war situation. Trump has created a fear among corporates not to shift manufacturing overseas or outsource work overseas. China needs USA more than USA needs China. Trump knows this so the trade bullying of China.
Some section of the media believe that interest rates are going to be cut in a trade war scenario. I will prefer to wait for May US nonfarm payrolls and other US jobs numbers to come to a conclusion. Federal Reserve could adopt a neutral stance if the US economy continues to create more jobs. A Federal reserve less inclined to cut interest rates by the year end will result in firm US dollar.
Industrial metals and crude oil can fall first and then rise. Unless demand side outlook is pessimistic for crude oil, sharp falls in crude oil should be used to invest. Chinese economic trend will be the key to short term prices in industrial metals. Long term outlook for all industrial metals is very bullish.
COMEX GOLD JUNE 2019 – current price $1287.05
· Gold gets another great chance to break past $1300 today.
· Support is between $1278-$1282 zone.
MCX GOLD JUNE – previous day close Rs.31904
· 200 day MA at 32164 is the key resistance.
· Gold can rise to 32164 and 32300 by Wednesday as long as it trades over 31733.
· Sell off will be there below 31733.
(prices are in Indian rupees above)
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NOTES TO THE ABOVE REPORT
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-- Published: Monday, 13 May 2019 | E-Mail | Print | Source: GoldSeek.com