-- Published: Thursday, 16 January 2020 | Print | Disqus
Trump’s impeachment progress is the key reason for gold and silver to rise. Impeachment news is the reason for gold price to rise from $1460 to $1520. Thereafter investment interest and speculative longs pushed gold past $1600. Gold prices not falling below $1530 despite some bearish news should be taken as short term positive by bulls.
News on US-China trade deal (everything collected from Reuters newswires)
White House economic adviser Larry Kudlow said that the U.S. is prepared to take "proportionate actions" if China doesn't live up to its commitments in a trade deal to be signed by President Donald Trump.
China’s pledge to buy U.S. farm goods based on “market conditions” added to doubts among farmers and commodity traders over Beijing’s lingering tariffs on U.S. exports. Chinese companies would buy $40 billion in U.S. agricultural products annually over the next two years “based on market conditions.
U.S. Vice President Mike Pence said that discussions had already begun on a “Phase 2” U.S.-China trade deal.
The centerpiece of the deal is a pledge by China to purchase at least an additional $200 billion worth of U.S. farm products and other goods and services over two years, above a baseline of $186 billion in purchases in 2017, the White House said.
Commitments include $54 billion in additional energy purchases, $78 billion in additional manufacturing purchases, $32 billion more in farm products, and $38 billion in services, according to a deal document released by the White House.
Our view: Trade war is not yet over. It is like a semi-active dormant volcano for now. Tariffs are still there on certain Chinese goods. Further escalation will not be there. Other nations are also expected to follow China and sign a trade deal with USA. Global economic growth will rise this year. Gold prices will only correct and not move into a medium term bearish phase. Gold investment demand and gold jewelry demand should form a short term high around Valentine day. Thereafter it may move into a short term bearish phase. I expect good gold investment demand and good jewelry demand till the valentine day. Firm gold prices will lure more and more people to give gold jewelry as a valentine day gift among married couples. Use sharp corrections (if any) to invest in gold.
Only three factors can move gold into a short term bearish (a) Democrats suffer humiliation in their attempt to impeach Trump. (b) Very strong Economic growth not just in USA or China but all over the world. (This will be known only by April). (c) Sharp rise in global bond yields.
COMEX SILVER MARCH 2020 – current price $1797.50
· Silver can rise to $1828 and $1850 today as long as it trades over $1770-$1775 zone.
· Sellers will be there below $1780.
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NOTES TO THE ABOVE REPORT
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-- Published: Thursday, 16 January 2020 | E-Mail | Print | Source: GoldSeek.com