It looks as though Trump is pushing for a trade deal with China as he approaches solutions to win him more satisfaction amongst American voters.
A big part of his manifesto pledge was to get a better deal, which I believe he was saving for closer to the 2020 election, but as he is under pressure, a deal may be put through soon.
Gold has been very closely following news on the trade war and recent weakness has shown that a deal is in the offing which may lead to a breakdown.
On the monthly chart, from a technical perspective, Gold looks ready to break down and retest support at 1360, a hugely long term resistance zone which has not yet been retested. Looking for shorts in the 1500-1520 zone and bids between 1350-1410 to close them with a healthy stop above 1550. This also coincides very nicely with a trend line holding us since mid 2018 which creates good confluence from a technical perspective.
A big part of his manifesto pledge was to get a better deal, which I believe he was saving for closer to the 2020 election, but as he is under pressure, a deal may be put through soon.
Gold has been very closely following news on the trade war and recent weakness has shown that a deal is in the offing which may lead to a breakdown.
On the monthly chart, from a technical perspective, Gold looks ready to break down and retest support at 1360, a hugely long term resistance zone which has not yet been retested. Looking for shorts in the 1500-1520 zone and bids between 1350-1410 to close them with a healthy stop above 1550. This also coincides very nicely with a trend line holding us since mid 2018 which creates good confluence from a technical perspective.
One thing I didn't anticipate was the moving forward of Trump's impeachment case. The charts looked very strong for a breakdown after a fake-out towards 1520 and a full retrace, however, the news has pushed Gold back up. So until this enquiry is dealt with appropriately, the result of which I am not able to predict, unless it is a speculative guess, then this trade is difficult to predict.