The gold price shot higher yesterday in a strong move, taking it to a one-month high. Overnight, however, gold pulled back from its intra-day peak just below $3,400 and was, at the time of writing, testing the area around $3,360 (formerly resistance) as support.
Source: TN Trader
Monday’s rally had been driven by investors ploughing funds back into perceived safe-havens amid renewed trade-war jitters. These came as President Trump accused China of violating the terms of a temporary trade agreement, an accusation vehemently denied by Chinese policymakers.
The US dollar fell sharply in response, as investors rushed to find sanctuary in the Swiss franc and Japanese yen. Gold was also an obvious target for those seeking some safety as investor risk appetite evaporated. The move also lit a fire under silver, which eclipsed gold’s gains by surging 5% on the day.
This move took it up towards $35 per ounce, and to levels last seen back in October. It has pulled back this morning, retesting $34 as support.
Yesterday’s moves suggest there’s still plenty of life in precious metals. But for those tempted to open fresh positions, it may be worth waiting to see how gold and silver behave this week following Monday’s fireworks.
