- The gold markets have been slightly positive during the trading session on Wednesday, as we wait for the so-called “liberation day” that Donald Trump has announced.
- At 4 PM in East Coast hours, we will get an announcement of various tariffs coming out of Washington DC for other countries.
- After all, the market is likely to continue to pay close attention to the possibility of even more chaos from a global market perspective.
Gold has been a way to protect your wealth, and as a result the market has shot straight up in the air, as we now find ourselves above the $3100 level. A pullback from here could for a buying opportunity, and that’s exactly what I’ll be looking for. I believe that the $3000 level offers a significant support level just waiting to happen, as it had been significant resistance previously.
The World and Donald Trump
I think at this point in time, the market has to focus on whatever the releases, but perhaps more importantly, the possibility of reciprocal tariffs. That being said, we are starting to see a lot of countries around the world start to make statements. Israel has dropped all tariffs on US goods. Canada is starting to make statements along the lines of willing to get rid of tariffs if the US is. However, there are some defiant leaders out there, so it will come down to what the major economies do. If a country like Kazakhstan absolutely refuses to bring down barriers to trade, that is a much different effect than a country like Canada or the United Kingdom.
Ultimately, by the end of the day we should have a little bit of clarity, something that we have desperately needed. However, do not get confused, there are plenty of reasons for gold to go higher, not just tariffs. The trend has been very strong for some time, and therefore I think you have to recognize it any pullback that we get will more likely than not attract buyers. Ultimately, this is a market that cannot be shorted anytime soon, because if we see the US dollar spiking suddenly, it means something ugly has happened, and both gold and the dollar will eventually rally. If the US dollar drops rather significantly, that will help gold as well.
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