Kitco News reports that the gold prices are slightly up at the first third of May 2019. However, a few geopolitical matters are currently in play, with more safe-haven demands. Traders are still unaffected by this situation, as gold prices still go up in the USA.
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The Stock Market Grew Overnight
This change happened overnight, with the consumer price index in the US jumping 0.3% up. This is if we take March into consideration as well as the 2% increase in YoY. The predictions were at 0.4% and 2.1% YoY for May, and given the results, they were pretty accurate. The stock markets are mostly increased worldwide, not only in the USA.
Increased Tariffs on Chinese Goods
The increased tariffs on Chinese goods might influence the price of gold. It may go up during the next couple of months, as an eleventh-hour trade agreement between the USA and China wasn’t realized. China wants to retaliate and it’s not strange since their market posted a solid rally at the beginning of May 2019. The trade talks between the USA and China will be continued in Washington.
Gold Price Forecast: The Market and The Nuclear Test-Firing
North Korea is test-firing their missiles again, which Trump doesn’t agree with. This issue made the US-China trade overshadowed, as it’s an important geopolitical flashpoint. If it escalates, this problem can represent a significant market-mover worldwide and especially between China and the USA. This issue will most likely induce an increase in the price of gold.
In the first week of May, the gold bears had the near-term technical advantage. The price of one ounce of gold in the USA stands at around $1292. The goal of the USA is to produce a close in June futures, above the resistance at $1,300.00.
The next near-term downside price breakout goal is to push the prices below solid technical support at $1,250.00. Source: Kitco
