Gold prices stuck between a short range amidst trade war risk and strong USD.
- Gold is stuck between a short range of 1214-1243, but higher US interests are coming in the next month
- US-Iran trade sanctions are escalating risk
- Potential gridlock around US-China trade war suffocating both CNH and Gold
Gold playing a wait-and-see game
Gold has continued to show a wait and see move, as US dollar is getting stronger and trade war worries have really started to provide sleepless nights. While this report is being written, gold is being traded at 1227.30 and further upside is hurdled by the strength of USD and another upcoming hike of 0.25% interest rates. The US-midterm election is likely to influence the gold and traders should be cautious on short-term trades.
In the long run, gold price has to pass through a troublesome pathway, if it has to go upwards, as global political issues are escalating risk potential. The recent daily gold chart has shown a recent high of $1243.5 and on the flipside, the gold has experienced a recent low of $1214.2.
Gold daily price chart
On the other side of the world, the political gridlock enlivened by recent trade war is suffocating both gold and CNH, as US President Donald Trump decided to put new tariffs over the remaining Chinese goods. However, not only the CNH is hurting, the gold price is hurting too as an unconditioned result of recent trade war.
Gold price technical analysis
When this report is being prepared, gold is being traded at 1226.63 (06.11.2018, GMT.16.00). At this moment, gold appears to remain stuck between a short range and an uptrend might have been on the edge, as US mid-term election has muted the market momentarily and market bias may have just opened up an opportune moment to be in a buying position for gold. An upscale move upwards 1266.66 looks likely to happen, on the other hand, the fallout risk below 1.1190 has not been out of sight yet.
[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]
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