As we are writing this report gold is trading at $1280 per ounce however the white metal is still hovering around entry level which is at 15.Today we have seen gold prices to reach up to $1290 however soon after the selling pressure drag the precious metal down. The moderate climb which we have witnessed in the precious metal sector was mostly caused by the surprise developments on the U.S.-China trade front that saw President Trump threaten new tariffs on imported Chinese products. Trump tweeted that some degree of a trade deal with China needs to happen by the end of this week, or new tariffs go into effect. The geopolitical uncertainty that includes the potential U.S.-China trade war escalation and also increased U.S.-Iran tensions are the major reason which caused the short term upwards price movement in P.Ms but really it should have uplift the yellow metal prices to at least $1300 by now. The recovery we which have witnessed in the U.S stock indexes was mostly due to trump tweet where he tweeted that China is coming to Washington this week to reach an agreement with the U.S on trade. However, the market participants are still very skeptical about the trade deal and the situation is still very much up in the air.
We have already informed you that China's economy has been affected the most in this ongoing U.S-China trade war and today we have seen another china report on this where China reported that it's exports dropped by 2.7% in April Y.O.Y compared to 14.2% gain in March. The U.S imposed tariffs on Chinese imports has damaged the Chinese economy in a significant manner.
our current bias-The bears are in the full control and have the overall technical advantage in gold and silver market overall we believe the boring price movement which we have witnessed from weeks in the precious metal sector has already ended and the serious technical damage in P. Ms charts has already inflicted however the next breakdown could be more severe enough.t
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Trump threat to Mexico for implementing the tariff, U.S China ugly trade war and hint by the U.S government that they could cut interest rate as soon as this summer, all are weighing on the U.S Stock indexes and benefiting the precious metal sector in a profound manner,we believe the yellow metal could easily climb $20-30$ from the level which it's currently trading at but today’s low-range close suggests the bulls are near-term exhausted and need to pause before moving higher. You would need to keep in mind that our current existing position in the yellow metal is long term trading position where we have the ability to move our stop loss higher where it is placed now due to low risk and enormous reward nature of the transaction. On the flip side, we could see a lifetime opportunity for you to enter a short position once the market will digest the news however we won't recommend you to do so at the moment.
Short term-Bullish
Our long term positions are well intact in both gold and silver.
@DaLatta, our short position is well intact in both of the precious metals
GoldSilverAnalyst
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@DaLatta, however, it's possible that the yellow metal could climb at least in the short term due to global uncertainty and turmoil perceived by the market participants
Andrewone
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The funniest thing is that I told you some months ago that gold is still uptrend lol
GoldSilverAnalyst
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@Andrewone, that's not a funny thing if one believes 10-20$ rally would make the yellow metal go in the uptrend that's their choice-The worst hasn't been started yet
@Andrewone, today's depth report will include all the reasons why
GoldSilverAnalyst
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@Andrewone, we would surely welcome these type of comments if the yellow metal has been crossed at least $1330 where we have entered short for our long term position
Andrewone
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@GoldSilverAnalyst, It's funny because I'm telling you gold is going up since 1180, there where you were selling
GoldSilverAnalyst
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@Andrewone, trust me there were numbers of people laughing when we told the people to short from around $1358 to around $1200 or even lower but they didn't and we closed the position at around $1260 same goes for the white metal however no one can be absolutely right 100% but we focus on the long term and it proves our profitability