Gold continued its recent rally after President Trump expressed dissatisfaction with the progress made in immigration talks between the United States and Mexico. Yesterday’s gold rally came to a sudden halt when Senate Finance Committee Chairman Charles Grassley predicted progress in the talks – leaving $10 of gains of about $15 a day. However, gold still succeeded in ending the day positively. It is currently trading at 1337 – up $6 from yesterday’s closing. Silver prices rose 15 per day at $14.96. In addition to general market concerns, President Trump also threatened yesterday to impose customs duties on another $300 billion wort of Chinese imports.
At $1337 an ounce, gold rose $62 over the past week, up nearly 5%. Although we doubt short-term coverage has played an upward role in the past few days, it is difficult to determine with any confidence to what degree it has been a factor. One important element was the strong institutional buying in response to recession concerns and speculation that the Federal Reserve will now move to lower interest rates before the end of the year.
The main resistance level is at 1357.66. This is the line of resistance between 2014-2019. There are many of resistance points above to 1392.55 2014 and we think it will take several attempts to overcome this major resistance. But in the long term, we still consider this as a potential baseline model, which will be targeted once it is completed near 1690. “
“Imagine yourself and your loved ones in the midst of a strong blizzard that lasts for years, think about what you may need, who can help you and why your fate may be important to anyone else.” History warns that the crisis will reshape the basic social and economic environment that is now taken for granted.
“The central bank’s net purchases totaled 651.5 trillion in 2018, up 74 percent year-on-year,” the World Gold Council said in its report on gold demand at the end of the year. This is the highest level of annual net purchases since the suspension of the dollar conversion to gold in 1971, and the second highest annual total ever. These enterprises now possess approximately 34,000 tons of gold. Increasing geopolitical and economic uncertainties throughout the year have prompted central banks to diversify their reserves and refocus their attention on the main objective of investing in safe, liquid assets.