Gold prices settled lower as investor worries over the outlook of trade war eased as President Donald Trump appeared open to lifting tariffs if “new and fair,” North American Free Trade Agreement (NAFTA) is signed.
In a series of tweets, Trump said: “Tariffs on Steel and Aluminum will only be lifted if “new and fair,” North American Free Trade Agreement (NAFTA) is signed.” He also added that Mexico must “do much more on stopping drugs from pouring into the U.S.”
Comments from House Speaker Paul Ryan who reportedly said the Republican party was “extremely worried” about Trump’s plan as it could spark a trade war, jeopardizing the economic gain from recent tax cuts.
Gold 4-hour chart has formed "Falling channel” pattern along with a long-term “Triple bottom chart”. The last session ended up consolidated near the channel’s resistance slope line. The market is expected to continue in bullish momentum once the same breaks above a key resistance holding at $1330(30535). The upside rally could test all the way through $1335-1340(30660-30785) levels in the upcoming sessions. Alternatively, if the key resistance holds strong then the market might retest the same and turn bearish. The downside rally could test $1320-1310(30285-30035) levels. Support holds near $1310(30035).
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