Tariffs against China, and the entire world for that matter, have created too much uncertainty for traders. We all know and understand that the markets do not like uncertainty. All commodities have come under pressure the past two to three weeks as the deadline for implementing tariffs on July 6th nears. Metals are no exception, even gold cannot draw any safe-haven interest with all that’s going on.
Metals are now clearly in, at least for the short term, a bear market. There is a lot of technical damage to the charts and some key support levels have been taken out on this liquidation. August gold is now trading below $1,250. September silver is below $16.00. Copper is in the low $2.92 range. Platinum now looks like it may test the $800.00 level.
So, nobody wants or needs any commodities? The real physical stuff! I doubt it. The tone and rhetoric is softening. Some delays of implementing tariffs have been granted. This will all work itself out. It’s more a question of when, not if. The global demand for these commodities hasn’t just gone away! These are long term bargain prices in my opinion.
Gold Aug ’18 Daily Chart