GoldSilverAnalyst

THE SOLE AIM IS TO MAKE YOU AN WELL INFORMED TRADER

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OANDA:XAUUSD   Ouro/Dólar Americano
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-The uncertainty regarding the U.S-China trade war is still maintained in the market place. The U.S-China finalizing deal has been the center of attention for the market participants from months however the ongoing indecision and uncertainty regarding the matter has been very confusing for traders and investors.

2-The cold war gets escalated after the U.S government blacklisted the Chinese tech giant Huawei and in the response, China retaliated by threatening the U.S that they could stop rare earth exports to the US.

3-Trump last week tweeted about the possibility of imposing 5% of tariffs on Mexico, on 10th June if steps won't be taken by the Mexico government to stop immigrants coming from Central America.

4-You may have remembered the 10 year yield curve inversion happened for the first time on 2nd March 2019 since 2007 when a recession hits U.S. economy.well in may the yield curve between 10year and 3month treasury notes re-inverted after dipping in the march into negative territory for the first time since 2007. The curve has been inverted since May 23. Generally, the yield curve inverts when investors are worried about the long-term outlook of the economy, However inverted yield doesn’t cause a recession but reflects negative sentiment about growth.

5-AngloGold Ashanti announced plans to sell its last remaining gold mine in South Africa, the Mponeng mine southwest of Johannesburg, due to ore depletion. They told-we are now facing “peak gold” where gold production from here-on will keep falling.

6-Gold-Silver ratio is currently at its 26 years all-time high and we believe Silver prices are not likely to catch up to gold soon. To be precise The underperformance of the white metal implies that investors are still not convinced even after witnessing the tremendous rally which we have witnessed in the yellow metal,However as silver is a proxy of gold, silver prices could spike in a significant manner if gold will be able to break its long term key resistance in upcoming months.

7-Trump threat to Mexico for implementing the tariff, U.S China ugly trade war, hint by the U.S government that they could cut interest rate as soon as this summer, the 10-year yield curve inversion all are weighing on the U.S Stock indexes and benefiting the precious metal sector in a profound manner

Please note-At the moment of publishing this report short positions in both of precious metals are well active in our portfolio and we suggest you do the same once the market opens.

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