Gold markets initially shot higher during the trading session on Thursday but ran into a lot of resistance in the form of a downtrend line. The descending channel of course has been crucial in this market and it looks very likely that we will continue to see that guide the market lower. Gold of course is moving right along with risk appetite, and as risk appetite increases is very likely that the gold markets will struggle in general. This will be especially true if the Americans push back the tariffs that are due on Sunday. If they do, that will throw a lot of money into the market as the gold will be sold off drastically, and “risk on” assets will strengthen.
Gold Outlook Video 13.12.19
Ultimately, if the tariffs are in fact put into place, it could lift gold, breaking above the $1500 level. We have already seen how little it takes to turn around a rally, as it did with the simple Tweet from Donald Trump that suggested “a very big deal with China is coming”, but we have seen that more than once. Ultimately, markets are being held hostage by the games politicians play, as the entire world moves back and forth based upon the idea of whether or not there is going to be a trade deal. December 15 is the next deadline for tariffs, and at this point Wall Street seems to be banking on the idea of a delay of those tariffs. If they don’t get it, gold could suddenly become attractive and this is why it’s probably wise to stay out of the gold market until Monday.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Corn Higher On Possible Trade Agreement
- GBP/JPY Price Forecast – British Pound Continues To Kill Time Ahead Of The Election
- GBP/USD Price Forecast – British Pound Continues To Kill Time Ahead Of Election Results
- Silver Prices Higher 4th Day In A Row
- E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 28208, Weakens Under 28069
- Gold Price Forecast – Gold Markets Slam Into Resistance