Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Trump meets with key trade advisers, will announce a response to Chinese tariffs.
Risk aversion intensifies on trade war escalation: Gold, CHF and JPY soar.

Matías Salord FXStreet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal.

China retaliates, Trump tweets and markets fear the worst

The value of gold rose now almost $40 from daily lows. Recently reached $1,529.60/oz, the highest intraday level since August 13, when it traded at $1,535 the highest in six years.

The bullish tone in gold and the negative momentum around the greenback remains intact, so it the metal could hit new multi-year highs soon. XAU/USD stands around $1,525; if it breaks above YTD highs, the next strong resistance is located at $1,550/55.

Market focus is now on the announcements from the White House. It has been reported that Trump is with his trade team. In a tweet, Trump said US companies were “hereby ordered” to start looking for an alternative to China. The escalation in trade tensions increased the odds of more aggressive rate cuts from the Fed and weigh on the US dollar.

XAU/USD

Overview
Today last price	1527.95
Today Daily Change	29.92
Today Daily Change %	2.00
Today daily open	1498.03

Trends
Daily SMA20	1479.11
Daily SMA50	1434.02
Daily SMA100	1363.56
Daily SMA200	1323.09

Levels
Previous Daily High	1504.54
Previous Daily Low	1492.65
Previous Weekly High	1534.4
Previous Weekly Low	1481
Previous Monthly High	1452.72
Previous Monthly Low	1382.02
Daily Fibonacci 38.2%	1497.19
Daily Fibonacci 61.8%	1500
Daily Pivot Point S1	1492.27
Daily Pivot Point S2	1486.51
Daily Pivot Point S3	1480.38
Daily Pivot Point R1	1504.17
Daily Pivot Point R2	1510.3
Daily Pivot Point R3	1516.06

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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