Fresh Record Highs For Gold As Trade War Heats Up
Gold At Fresh Highs
Gold prices continue to push further into record territory this week as uncertainty around global trade wars heats up. The futures market is now up around 10% from the December lows with prices this eek breaking out above the prior all-time highs at 2789.40. The rally comes despite a fresh uptick in the US Dollar and represents strong safe-haven demand for gold amidst the resumption of the US/China trade war on the back of Trump implementing tariffs over the weekend and China last night retaliating. With fears that the trade dispute between the two economic superpowers could yet escalate further, gold ETFs are seeing record inflows this week as traders look to store capital in the safe-haven asset.
US Data – Jobs In Focus
Alongside incoming news flow around the trade war, traders will also be watching incoming US data this week with the latest US labour market update due on Friday. Ahead of that, traders will today receive the latest JOLTS job openings number, expected broadly unchanged at 8 million down from 8.1 million prior. Given the recent hawkish shift in the market’s Fed outlook, any upside surprise today could further strengthen this view, capping gold prices somewhat. On the other hand, a soft number today would certainly help keep gold prices underpinned through the middle of the week ahead of Friday’s data.
Technical Views
Gold
The rally in gold has seen the market breaking above the 2,789.40 level and while above here, focus is on a continuation higher in line with bullish momentum studies readings. Any dip below the level will see 2,718.8 coming into view as next key support with the near-term bull view only altered on a break below that level.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.