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After the Numbers

Commentaries & Views

(Kitco News) - The underlying focus for the gold market remains the worry about a potential trade war with China. It was a matter of time before President Trump’s ego forced him to respond to China’s comment on Wednesday that they had won round one of the tariff salvo. Last night, President Trump proposed another $100 billion  to the list of tariff increases on the Chinese and the gold market promptly jumped higher. Traders lightened up on the position ahead of the employment data today, in case the release contained an upward revision in wage pressures. The employment data came out substantially below estimates and wage inflation remained muted. That helped the metals initially on thoughts that the Fed may decide to take a wait-and-see attitude towards higher rates but the main focus had already returned to the trade war worry and gold was rebid. For traders trying to be ahead of the sound bites, good luck. Buying support lines, with tight stops, and selling resistance has worked to some degree but when you are dealing with a market that responds to the interpretation of tweets -- good luck with setting up a strategy. We see support at the $1,322 level, with resistance evident at $1,337.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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