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Trade signals 18th-25nd Jan

Gold prices have fallen as equity markets have recovered. Trade tensions have eased between China and the U.S. as the Trump administration tries to calm concerns amid an impasse on government funding. Investors remain cautious, however, since there has not been anything solid in terms of trade. Current performance of equities, bonds, and commodities could be influenced by a reallocation of assets, which occurs in January. Unresolved political issues remain in both the U.S. and the U.K, acting as a headwind to equities and pushing investors into safe haven assets, similar to what occurred in December.

Trade signals 1st-8th Feb

Gold prices have run up sharply over the past week. Technical chart indicators suggest overbought conditions, which could make gold prices vulnerable to the downside. Prices have support at $1,315. Fundamentals for gold remain supportive for the near term, with ongoing uncertainty about various political issues. In the United States, there is little progress made with regard to finding funding for a Mexico-U.S. border wall. The uncertainty of finding a solution to this issue and the possibility of another shutdown or a declaration of national emergency by Donald Trump should be supportive of gold. Trade talks between the U.S. and China remain on track, but there still are various issues that require resolution and until there is a final agreement markets will remain on edge, which also should be positive for gold. Amid these and other political issues between the U.S. and Russia and Britain and the E.U. gold prices should be supported at current levels. Investors with long positions should hold their positions with a price target of $1,330, fresh long positions can be built if prices slip to $1,315.

Trade signals 1st-5th April

Gold moved to trade in a wide range recently, between $1,290 and $1,330. Prices moved higher as market participants rolled their position from the April Comex contract to the June Comex contract. Price volatility has picked up and is likely to continue. While economic conditions appear to be firm, albeit expanding at a slower pace than last year, political headwinds remain. Brexit is still in the headlines in addition to traded issues between China and the U.S.

There is now a head a shoulders pattern formed for gold, which suggest if prices fall below $1,287 or around there then gold could drop to as low as $1,210. This said, there also is much going on politically that could affect the financial and economies that push gold higher, perhaps above $1,350. While CPM is suggesting higher gold prices for these next several trading days, there should also be opportunities to buy on the dips and sell on the peaks, picking price points.