Karachi, June 19, 2018 (PPI-OT): Gold
Gold is in a bit of a runt during the session yesterday, as investors try to figure out what the next move is between the United States and China. Beyond that, it has a lot of bullish pressure on the US dollar which of course drags on the value of gold overall. Economists think that the market is going to continue to be very noisy, and it will be the first to admit that from a longer- term standpoint. However, short-term investors have been beaten up as of late, so it is going to be difficult for some people to step in. The easiest way to step in and pick up Gold is to buy it either physically, taking out the issue of leverage, or in small increments. However, the uptrend line just above should be a bit of a resistance barrier, so if it was to break above there, the market should continue to go higher, perhaps reaching towards the $1300 level. The $1275 level underneath is massive support.
Gold notched modest bounce from lowest close of 2018
Spot gold was up 0.45 percent at $1,283.62 an ounce
Gold prices can gain during times of financial and political uncertainty as the metal is seen as a safe place to park assets
Gold prices came as the U.S dollar marked a 1.3% weekly gain
As long as gold continued to trade below its 200- day moving average at $1,307 prices were more likely to fall than rise
Gold prices rose today, supported by safe-haven buying, as an escalating trade spat between the United States and China sparked a sell-off in equity markets.
The U.S dollar and Asian stocks extended a global downturn after President Donald Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods in an escalating tit-for-tat trade war between the world’s two biggest economies.
The dollar was down 0.3 percent against a basket of major currencies at 94.548, as well as hitting a one-week low versus the yen. Asian shares outside Japan slid 1 percent to their lowest level in over four months.
Spot gold prices were hemmed in a tight trading range after Friday’s selloff because of competing pressure and support, forcing investors to reassess their positions.
U.S and China trade dispute affected a whole bunch of physical commodities, that will have a spill over on the gold market. Unfortunately for the gold market bulls, their yellow metal last Friday wanted to act like a raw commodity instead of a safe-haven store of value.
Gold plunged 1.8 percent on Friday, its biggest one-day fall since November 2016, despite Washington deciding to enact tariffs on $50 billion in Chinese goods.
Global markets have focused on a growing trade spat between the U.S and China. The hostilities have shown signs of devolving into a full-blown trade war, raising questions about the outlook for economic global growth if the two largest economies, China and the U.S, lock horns. The market is also ignoring the political risks in Germany.