Trump back and threaten China again, will we see the rise in gold prices?
Trump said he opposed the suspension of the new high tariffs on Beijing, which came ahead of his meeting with Chinese President Chi Xinping. The comments are not the same as the stock market, which is trying to recover after one of the worst tracks ever.
But are gold lovers excited about these statements? Will gold rise strongly before Nov. 30? The answer is: Yes, no.
These statements encourage long- term investors to add to their positions, but if the equity and dollar markets are not hit by a strong blow in the coming days, gold is likely to remain at $ 1,212 to $ 1,235 an ounce, Precious Metals Industry, Walter Petroch.
Equity markets struggled at the start of Asian trading on Tuesday after Trump's press conference with the Wall Street Journal. Trump crushed all hopes for a truce from China ahead of the meeting on the sidelines of the 20th summit in the Argentine capital on Friday.
Trump threatens more tariffs without agreement
Trump told the Wall Street Journal that there was a "high probability" of accepting Beijing's demand that Washington's plans to impose $ 200 billion in tariffs on 25 percent of Chinese goods be stopped, up from 10 percent. Chinese officials said they were putting the top priority in persuading Washington to stop raising the tariffs to be applied on Jan. 1.
Without an agreement, President Trump may impose tariffs on between 10% and 25% of uncharged Chinese goods, with funds up to $ 267 billion. The new tariffs include electronic devices manufactured by US companies in China, such as iPhone devices from the company (NASDAQ: Apple ).
Mr Bewch noted that Trump could be on the edge of his rhetoric with China always, but gold investors should wait to see the material evidence of those statements before starting to issue huge buy / sell orders.
The direction of gold is dependent on the outcome of Friday's talks
Bewach, the vice president of investment services firm Dillon Gage Metals, says:
"Every market is waiting for assurances that the United States and China will reach a trade agreement, and we will not know anything exactly until Friday."
"Investors will flee to the safe haven after the talks collapse, but if the uncertainty continues for any reason beyond Friday, we will need to exceed the $ 1,232 threshold to establish a new technical strength point."
Sindra Sineff takes a similar view, describing the gold futures position at a "critical crossroads", drawing out the five commodity charts.
"There is no doubt in the enthusiasm of bulls and gold to take more aggressive ways than current levels and I think that the movement will have continuity if gold futures can move above $ 1235 , and will determine the intentions of bulls gold."
The most active gold futures on the New York Mercantile Exchange for December were down $ 8, or 0.7%, at $ 1,222.40 an ounce on Monday as the dollar moved higher.
"Strong Buy" appeal for gold
The technical scene on Investoring.com charts the "strong buy" of gold and shows the strongest resistance levels Fibonacci at $ 1,236.93. This strong resistance barrier allows for $ 15 for gold, which could breach the next strength level.
Gold stopped trading above $ 1,360 in February, before the Federal Reserve raised interest rates 3 times more than in the first quarter, causing a sharp drop in prices for the precious metal. However, gold has been able to climb since October, helped by the global liquidation of the stock market, with gold rising to three-month highs at around $ 1,244. But the Fed is aiming to raise interest rates for the fourth time in December, and markets are torn, unable to rise, and do not retreat strongly at the moment.
Precious Metals analyst George Giro of RBC Wealth Management said on Monday:
"Traders are looking at price calls at $ 1,235 and $ 1,250 , taking into consideration the fall below $ 1,185 to $ 1,180 . If the price stabilizes from the financial side, then there will be new contracts, which need margin."
Directory of Federal
Next Wednesday at the New York Economic Forum, a special event will be held at the Federal Reserve, the Federal Reserve Framework for Financial Stability, which will be addressed by Federal President Jerome Powell. The proceedings of the November 7-8 meeting of the Federations will be issued the following day.
Investors scrutinize those events for the Fed in search of any evidence of the direction of the gold market. Still, some gold brokers encourage their customers to go into gold now, arguing that the precious rate is disappointing.
Market strategist Tom Beller, the precious metals supervisor at the RJO brokerage in Chicago, says:
"Maybe we will not get $ 1,250 tomorrow, but I think we're going in that direction, and we're not far from that price."
"I continue to say: gold is an opportunity to buy, it is very cheap, if you ask me."