Source: Economic Events August 9, 2019 – Admiral Markets’ Forex Calendar
The next wave of escalation in the trade dispute between the US and China resulted in a squeeze higher in Gold reaching 1,500 USD.
After the somewhat “hawkish” comments from Fed chairman Powell last week on Wednesday (delivering “only” a 25 basis point rate cut and making further easing steps mainly dependent on global economic developments), the newest attacks from US president Trump via Twitter, labelling China a currency manipulator after China allowed the Yuan Renminbi to weaken past the psychologically important line of 7.00 per USD, were the main driver for the precious metal higher.
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Technically, the mode in Gold seems a little extended. That said from a risk-reward perspective, a pullback against 1,440/450 USD seems to be an attractive long-trigger, especially since from Monday August 12 through September 5, a bullish seasonal window opens in Gold.
On a daily time frame the mode in Gold can be considered bullish as long as we trade above 1,380 USD:
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between May 10, 2018, to August 8, 2019). Accessed: August 8, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of Gold fell by 1.7%, in 2015, it fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, meaning that after five years, it was up by 6.4%.
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