Gold News: Boosted By Trade Tension Restrained By White Metals

Gold News

In the latest gold news: As of April 09 at approximately 11:14am EST, gold was trading at $1333.09 per ounce, down slightly since last week. At approximately this time last week, gold was trading at $1343.11 per ounce.

gold news

Gold has been attempting to break the key price level of $1350 for a while and this week proved to be disappointing to investors who hope that the bullion will push ahead. In favor of rising gold prices, there is the constant geopolitical fear that the United States and China will escalate their aggressive trade positions and that friction will worsen. China has escalated its attacks on the Trump administration over the increased billions of dollars worth of threatened tariffs. It blames Washington for trade issues and maintains the position that it was impossible to negotiate given “current circumstances”. As a response, President Xi Jinping is expected to give a speech tomorrow at the Boao Forum for Asia in Hainan. Think Markets’ chief market analyst Naeem Aslam stated, “The speech by Xi Jinping tomorrow is going to be really important. If it shows that the trade war tensions are not de-escalated, we could see a big upside move for the gold price”.

Aslam further projected that support is currently at $1307 and resistance is at $1348, which marks the current zone gold is stuck in and would need to break out of in order to see significant movement. On the other hand, we have various elements that are in opposition to further growth for gold. Saxo Bank’s head of commodity strategy Ole Hansen stated, “A dismal relative and absolute performance among the industrial demand-dependent white metals of palladium, platinum and silver has emerged as a drag on gold’s ability to move forward and properly challenge a key band of resistance above $1355.” Hansen blames this performance for gold’s position in this fixed price range. David Madden, market analyst at CMC Markets, has indicated that he doesn’t believe there is any indication that investor sentiment will change in the near future, and that what could drive change are weaker equity markets or a weaker U.S. dollar. Christopher Vecchio, senior currency strategist at DailyFX, stated, “There is so much going on right now that there is no direction […] if you are going to trade gold then I recommend small positions and for traders to be nimble”.

This sentiment has caused the bullion to remain fairly volatile for the year. In the 14-day gold prediction ending January 02, I Know First’s algorithm based on a stock prediction algorithm showed an impressive 100% accuracy rate, as seen in “Gold Forecast Based on Algorithmic Trading: Returns up to 4.53% in 14 Days.” After a fortnight, I Know First’s average percent change came out to 4.53% with GLD as the top earner, bringing in an impressive 4.53% return to investors.

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