- Gold tried to rally significantly during the trading session on Wednesday but gave back gains as we continue to see a lot of noisy trading overall.
- All things being equal, this is a market that I think given enough time will probably continue to see a lot of questions asked about both directions because we just don’t really know what to do with the whole trade tariff situation and the latest headlines.
- The session saw Trump say in social media that a deal had been made between the Chinese and the Americans and it was only a matter of him and President Xi signing the agreement.
That being said, nobody really knows what’s going on. And at this point in time, the market looks confused. In general, this is a situation where we are right in the middle of the larger consolidation region between the $3,200 level below and the $3,500 level above. The $3,500 level above is the recent all-time high.
On the Move Higher
And if we can get above there, that really gets the market excited. Nonetheless, I think you’ve got a situation where we’ll more likely than not have to focus on short-term charts with the sideways, but positive bias, if that makes any sense. After all, we’ve been in an uptrend for some time, and I just don’t see how that changes anytime soon. After all there are plenty of central banks out there buying gold. And of course, the trade situation isn’t exactly over with. Beyond that, you had CPI fail a little bit in the announcement on Wednesday in the United States.
So that has some people also thinking that perhaps the Federal Reserve may have to cut rates before. Originally thought I don’t know if that’s the case, but certainly gold is reacting to it I look at any pullback at this point in time as a potential opportunity to buy what is a very strong uptrend
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.