Does the New NAFTA Deal Affect Gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After months of negotiations to create a new NAFTA agreement, the deal is done. The equity markets are soaring on the news along with the “loonie.” However, gold remains stuck in consolidation and shows no signs of breaking out either way.
For the last couple of days, gold has been under pressure but has not broken the $1,180 level, indicating that the bottoms are in. On the other hand, gold has failed at resistance and has not been able to take out the top end of the range.
With all the news out there, it’s obvious that gold is stuck in a trading range and the news is meaningless. We expect gold to follow silver, which started to break out to the upside last week. For now, the best trade is the one of patience until gold breaks out one way or the other.