Can Gold Extend Last Week’s GainPosted 08/31/2018 9:14AM CT |
In the early morning trade, October gold is currently trading slightly in the green at $1204.0, but still trading below last Friday’s weekly close of $1,207.5. Gold pushed higher over night mostly due to President Trump’s talks of an additional $200 billion in Chinese imports which has caught the bull camp’s attention. Furthermore, some of his rhetoric on trade from last night’s speech in Indiana might have increased anxiety that these trade wars will continue for longer than expected and therefore, has also created some safe haven buying support for gold. The U.S. is going into a long weekend and a lot could happen, so it might be hard going home short, which gives the bull camp a slight advantage here in the short-term.
If you take a quick look at the daily October gold chart, you’ll see that last week gold broke and held above it. Two weeks ago in my last article, I stated October gold would have to break above this bearish trendline in order to caught some real momentum buying, which it did. However, I also mentioned that gold would have to close above $1,210.0 a couple times in order to see further upside, but that has only happened once in the last week. Since it’s Labor Day Weekend here in the U.S. there has been very low volume across the commodity markets, so that is probably a key reason for poor follow through. We’ll just have to wait until next week to see how this market plays out.
Gold Oct ’18 Daily Chart