- Gold falls after earlier attempting to rally
- White House puts $50B tariffs on China
- CB Consumer confidence: 128.0 vs 128.2 exp
It’s been a bit of a seesaw day for Gold traders, with the precious metal seeing a swift move higher met with a firm rejection which has caused price to fall back below 1300 and trade at its lowest level of the week. The spike came in the mid-morning as European indices tumbled on the latest political events in Ital and investors seemingly sought out safe-havens. However, after a possible bull flag setup failed, the market retraced swiftly lower and now sits not far form its lowest level of the week.
Gold made a sharp move higher this morning as stocks tumbled but the bull flag setup failed and price swiftly dropped to its low of the day back below 1300. Source: xStation
Another development that could potentially impact Gold is the announcement from the White House of a 25% tariff on $50B of imported goods from China. The trade tensions between the US and China have very much moved to the back burner in recent weeks, but they haven’t disappeared entirely and remain a potential threat that could return in the not too distant future. The levies will “contain industrially significant technology” according to the release with a final list to be announced by June 15th. A re-emergence of trade tensions between the world’s two larges economies would potentially drive up the price of Gold.
Gold has oscillated around the 1300 level in recent trade. Longs will want to see another close back above 1303.55 before they can hope for a sustained push higher. Source: xStation
It’s a pretty quiet day on the data front, with the conference board consumer confidence the main one this afternoon. The latest reading has shown a slight drop to 128.0 from 128.7 previously, slightly lower than the 128.2 expected. Whilst this decline mirrors a recent pullback in the Uni Mich equivalent, both measures remain very high relative to the past decade.
The latest CB consumer confidence reading fell slightly but remains high compared tot he past decade. Source: XTB Macrobond