Friday, March 23, 2018

Interest rates, trade wars, and Trump veto threat send gold price up over $40 in past three days

On March 20, gold had been hard pressed to hold above $1300 as a combination of weak sentiment and front-running the Fed drove down the price to $1306.  However ever since that intra-week low, gold has not only rebounded soundly, but is nearly pushing $1350 just three days later.

At the heart of this move is the turmoil over rising interest rates, the acceleration of a trade war with China, and news out early this morning that President Trump may veto the Omnibus Spending Bill which would lead to the government shutting down at the end of the day.


On the technical side, gold has just broken through a short-term resistance level of $1345, and if it can sustain the momentum upwards to $1378, then it is likely to make a serious push towards $1400 as domestic and geo-political events will all be good for gold.

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