Gold increase to $1,560 per ounce?
Credit: Jamie Harford
The bulls are in after smashing through some major resistances at $1,440, which have proved tops for the last 6 years. The moves follow President Donald Trump’s threat last week to impose a 10% tariff on $300 billon of Chinese imports from the 1st of September and responses from China around introducing their own tariffs. With the US also cutting interest rates and the unemployment rate increasing, the VIX Index (Volatility Index) has increased by 34%.
With all of this happening, traders have been shifting their money into safe haven assets, such as Gold and the markets could see this bullish momentum continue and push towards the 1560 mark, another key high from early 2013?
Technical
Gold continues to look positive, however is also flashing a strong overbought signal. With the VIX increasing and S&P down by 3%, once pulling back to $1,460, the markets could offer another push higher above the $1,500 mark with $1,560 being a key target for bulls.
