Trade Wars are brewing, or so I am told. Personally I have seen a pattern from this administration of bluster about an issue, then either walking back or using noise to negotiate towards a better deal. Concurrently the media have been loud mouth dissenters basically on everything, not recognizing this pattern, and worse not recognizing they are being played for their part is helping to reinforce the success of the pattern. But what do I know.
Well, I know that Gold is reacting in price positively. The chart below shows it has been consolidating near the top of a nearly 4 year bottoming process. This has been going on since the beginning of the year. The pre-market move Wednesday has the Gold ETF below within a few cents of the resistance zone. This does not mean that it will break to the upside, but if you are one of the people talking about how many timed ca the S&P 500 touch the 200 day moving average before blowing lower, then you should be watching this for upside movement as well. It is the same principle.
No one know if Gold will break this consolidation to the upside or the downside. Momentum indicators are mixed n this as well. From a longer perspective a move over 129 would be very bullish for the Gold ETF. And back under 124 signals a possible breakdown or more long term consolidation. It is not time to buy Gold just yet, but the hour may be approaching.
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