flag-gb flag-my flag-zh flag-id flag-th flag-vi

Trump’s tough comments on China boost demand for gold and other defensive assets

Gold and other defensive assets are gradually regaining their positions after Donald Trump's rather harsh remarks about China. The US president threatened a substantial increase in tariffs on Chinese goods if the parties could not conclude a trade agreement. Also, Trump called the Chinese nation “scammers” and accused of manipulating WTO rules. Amid increasing US trade pressure on China, major stock indexes moved into the red trading zone. In this case, gold is traditionally regarded as the main defensive asset.

Today, gold will be influenced only by geopolitical news and the situation on the stock market. Investors are awaiting the publication of a report on inflation in the United States and the speech of Fed Chairman Jerome Powell.

On the chart, we note a false breakdown of the level of 1450.00 and a fairly good upward price rebound. This can be considered as a local signal for starting of the correctional movement, the immediate target for which is the level of 1470.00.

Resistance Levels: 1470.00, 1485.00, 1505.00;

Support Levels: 1450.00, 1440.00, 1430.00.

The main scenario is a decline to 1453.00 and an increase to 1470.00.

An alternative scenario is an increase to 1470.00 from current levels.

A positive news background locally prevails on the market. Inside the day we consider longs from the level of 1453.00.

Latest news

Chinese New Year

2020-02-03 07:08:28

Dear traders and partners, FortFS is happy to congratulate all Traders on the Year of the Metal Rat and to launch the annual Chinese New Year promotion! From February 03 to March 03 you will be able to receive a cashback of 10% for every deposit from 100 USD. Deposit minimum 100 USD or more, […]

Welcome Bonus 100 USD

2020-01-28 09:58:32

Dear Traders, Make sure to receive $100 on your trading accounts only from the 27th to the 31st of January! Welcome Bonus 100 USD is the best way to start trading and test all of the Company’s products! The bonus features: Withdrawal of up to 100 USD 75 lots of trading turnover A two-week testing […]