{"id":145117,"date":"2019-04-05T09:59:51","date_gmt":"2019-04-05T13:59:51","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=145117"},"modified":"2019-04-05T09:47:27","modified_gmt":"2019-04-05T13:47:27","slug":"trumps-trade-talk-comments-send-equities-soaring-keeping-gold-capped","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/trumps-trade-talk-comments-send-equities-soaring-keeping-gold-capped\/","title":{"rendered":"Trump\u2019s Trade Talk Comments Send Equities Soaring, Keeping Gold Capped"},"content":{"rendered":"
April 5, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Gold<\/strong><\/h2>\n

The yellow metal was lower again<\/strong>\u00a0this week as, despite a subdued US Dollar, surging equities prices saw investors moving away from safe havens. \u00a0The SPX500 has traded up to levels not seen since October 2018 this week. This comes thanks to optimism regarding a\u00a0potential US\/China trade deal continues to drive the rally in risk assets.<\/strong><\/p>\n

Trump Sounds Hopeful<\/strong><\/h2>\n

Donald Trump lit a fire under equities prices into the back end of the week with comments made ahead of a meeting with Chinese Vice-premier Liu. Speaking from the White House, Trump told reporters that the two sides had\u00a0found agreement over some of the toughest issues i<\/strong>n the negotiations. He added that a deal could now come within the next four weeks.<\/p>\n

\u201cEpic Deal\u201d<\/strong><\/h2>\n

Speaking in his usual casual manner, Trump said:<\/p>\n

\u00a0\u201cThis is an epic deal, historic<\/strong>\u00a0\u2013 if it happens\u2026This is the Grand Daddy of them all and we\u2019ll see if it happens. It\u2019s got a very good chance of happening.\u201d<\/p><\/blockquote>\n

Importantly, these comments were echoed by the Chinese VP, Liu, who said that the US and China had found consensus over some of the key aspects of the agreement such as the text of the economic and trade agreement.<\/p>\n

World Growth Hopes<\/strong><\/h2>\n

News of such progress is a\u00a0major boost for markets<\/strong>\u00a0given the heavy decline in\u00a0world growth<\/a>\u00a0seen over the last 12 months which both the IMF and the OECD, as well as numerous central banks, have each attributed to the US\/China trade war. However,\u00a0such a deal would likely be bearish for gold.\u00a0<\/strong>The metal\u00a0was appreciating strongly last year due to the risk-off tone sweeping markets. With the SPX500 having nearly erased these losses now, investors are less concerned with parking their capital in gold.<\/p>

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Technical Perspective<\/strong><\/h2>\n

\"forex<\/a><\/p>\n

Gold prices continue to stagnate towards the top of the large contracting triangle pattern which has framed price action over the last few years. Currently, price is sitting on the recent 1280.26 support which continues to hold price up. Below here, the next support is at the 1244.18 level, with the supporting trend line from 2015 lows coming in below that.<\/p>\n

\"silver\"<\/a><\/p>\n

The lower timeframes show the pressure mounting in the 1280.26 level with a descending triangle running from 2019 highs. We would need a break above the bearish trend line to alleviate near term bearishness.<\/p>\n

Silver<\/strong><\/h2>\n

Silver prices have performed a little better than gold this week. While only slightly positive on the week, the combination of a weaker US Dollar and firmer equities prices has kept silver better supported than gold. Due to it often being used for industrial purposes, silver is being boosted by optimism around a\u00a0US\/China trade deal<\/a>\u00a0and the anticipation of a boost to world growth.<\/p>\n

Technical Perspective<\/strong><\/h2>\n

\"xagusd\"<\/a><\/p>\n

Despite testing, and piercing below, the 14.9705 breakout zone again, silver prices have once again found support. If price can hold above this level, putting in a higher low against last year\u2019s lows, we could see another topside run. There is plenty of technical resistance overhead, however. The bearish trend line from 2016 highs is coming in around some key structural levels starting at 15.5359 and running up to 15.7342. If we break back below the 14.9705 level, the next key support is down at the 14.0311 level.<\/p>\n

\"forex<\/a><\/p>\n

On the lower timeframes, you can see price is currently caught in a range between 14.705 and 15.2161. This is offering opportunities to trade a topside break targeting 15.5359 initially.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Gold The yellow metal was lower again\u00a0this week as, despite a subdued US Dollar, surging equities prices saw investors moving away from safe havens. \u00a0The SPX500 has traded up to levels not seen since October 2018 this week. This comes thanks to optimism regarding a\u00a0potential US\/China trade deal continues to drive the rally […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-145117","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=145117"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145117\/revisions"}],"predecessor-version":[{"id":145132,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145117\/revisions\/145132"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=145117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=145117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=145117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}