Gold Price Prediction – Gold Rebounds on Trump Trade Tariff Announcement

Gold rallies on trade concerns
David Becker


Gold prices whipsawed higher, initially moving lower but rising following surprise tariffs announced by President Trump on Thursday. Prices surged to the July highs and are poised to break out. US yields tumbled, following softer than expected US ISM manufacturing data. The contraction in global growth is sharply weighing on this sector.

Trade gold with FXTM


Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money


Technical Analysis

Gold prices moved whipsawed higher closing near 6-year highs. Prices sliced back above  the 10-day moving average, which is now seen as support near the 10-day moving average near 1,425. Target support on the yellow metal is seen near the 50-day moving average at 1,386.Resistance is seen near the July highs at 1,453. Short term momentum turned positive as the fast stochastic generated a crossover buy signal. Medium term momentum is neutral as the MACD (moving average convergence divergence) histogram is printing in the red with a rising  trajectory which points to consolidation.

Riskier assets whipsawed along with gold as the surprise tariffs President Donald Trump announced Thursday against $300 billion or so of Chinese goods takes the trade dispute between the two countries to a new level. The president’s announcement jolted markets, which had bounced back sharply off Wednesday’s disappointing Fed rate cut only to have their legs cut out from underneath by news of a heightened trade war. Trump’s move means that all Chinese goods entering the U.S. will be subject to some sort of duties.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.