Friday, November 17, 2017

Geopolitical events in Venezuela and Zimbabwe are helping gold price to test its 100 day moving average of $1290

With the ISDA issuing a statement that the Venezuelan bond default was enough to trigger a credit event that may soon have serious implications for the derivatives tied to those bonds, gold has moved up more than $15 today to test its 100 day moving average resistance level of $1290.

In addition to what is going on in Venezuela, we are also seeing events take place in Zimbabwe where the decades long reign of President Mugabe may be coming to an end as the African nation's economy roils through its second hyperinflationary event in a decade.


If the gold price can break through $1300 and sustain this level leading into Thanksgiving and the upcoming holiday shopping season, then chances are very good that price will become the new support level, and even consolidate should economic data lead the Fed to decide not to raise interest rates at their upcoming December FOMC meeting.

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