The yellow metal tumbled early Monday as Asian markets opened following the news that U.S.-China trade talks will re-start and a surprise meeting between U.S. President Donald Trump and North Korea’s leader Kim Jong Un.All eyes were on the G20 headlines this weekend as analysts wondered if gold would be able to stay above the $1,400 an ounce level and keep its recent gains after hitting fresh 6-year highs.One of the biggest news out of the G20 summit this weekend was the re-launch of the U.S.-China trade talks. U.S. President Donald Trump and Chinese President Xi Jinping announced a ceasefire on any additional tariffs and a re-start of talks.Also, Trump talked about a partial lifting of restrictions placed on Chinese telecommunications giant Huawei.Another key geopolitical puzzle piece during this weekend was the unexpected meeting between North Korean leader Kim Jong Un and U.S. President Donald Trump. The meeting was set-up via a tweet Trump set out.“We are somewhat concerned about the speed with which the market has re-assessed the likelihood of rate cuts by the U.S. central bank. Any delays in delivering easier monetary conditions, potentially exacerbated by a constructive G20 summit, could push gold prices lower,”
Previous comment(Still valid)
In my 11 years in the business, I have never been more uncertain however we try to look the picture of the precious metal sector from a technical side we could easily see that if gold breaks above $1422 then the next critical resistance stands at $1473 and after that vapor until $1,600.However, if you are a bull you will need to ask yourself these questions.
1-Are we in a recession yet? although gold may be telling us it’s an imminent occurrence
2-what is the probability of war between the U.S and Iran?
3-What if Trump gets an Agreement with trade with China, later this week?
We are getting the answers one by one-
Current active position
Asset: XAUUSD ( GOLD )
Sell Stop Entry Price:1415
Take Profit: 1160
Stop Loss:1480(we will reduce the stop loss points once positions will be more favorable)
Risk/Reward: 1:4
Previous comment(Still valid)
In my 11 years in the business, I have never been more uncertain however we try to look the picture of the precious metal sector from a technical side we could easily see that if gold breaks above $1422 then the next critical resistance stands at $1473 and after that vapor until $1,600.However, if you are a bull you will need to ask yourself these questions.
1-Are we in a recession yet? although gold may be telling us it’s an imminent occurrence
2-what is the probability of war between the U.S and Iran?
3-What if Trump gets an Agreement with trade with China, later this week?
We are getting the answers one by one-
Current active position
Asset: XAUUSD ( GOLD )
Sell Stop Entry Price:1415
Take Profit: 1160
Stop Loss:1480(we will reduce the stop loss points once positions will be more favorable)
Risk/Reward: 1:4
