Gold Price Bid as US President Trump Warns of New European Tariffs
Gold Price Forecast, Technical Analysis and Charts:
- US looking to impose 100% tariffs on $2.4 billion of French imports.
- Gold battling technical levels, breakout nears.
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Gold Analysis – US ups Trade War with Europe, Risk Assets Sag
The United States has threatened to apply 100% tariffs on a range of French goods, saying that the recent French digital tax is unfair. US trade representative Robert Lighthizer said late Monday that the US will ‘take action against digital tax regimes that discriminate or otherwise impose undue burdens on US companies.’ A range of French products, including champagne and cheese, to the tune of $2.4 billion could be affected by the new tariffs. European equities slipped lower in early turnover, apart from the DAX which is recouping part of Monday’s heavy losses.
Adding fuel to the risk-off move, US President trump told reporters at today’s NATO meeting in London, that recent comments from President Macron that NATO is ‘brain-dead’ are disrespectful and that Germany are not their ‘fair share’ to NATO. In addition, President trump said that he was not going to get involved in the UK elections and that he hadn’t thought about the vexed issue of the NHS in any US-UK trade deal.
Against this mini-flare in US-EU relations, gold has picked up a small bid and is currently battling to break above the 20-day moving average and the 23.6% Fibonacci retracement level. The short-dated ma sits around the $1,463/oz. level while Fibonacci retracement is a fraction higher at $1.463.5/oz.Over the last week gold has picked up around $15 with the daily chart making a series of short-term higher lows, while volatility – measured by ATR – remains at multi-month lows. The first area of resistance is between $1,479/oz. (November 20 high) and $1,481/oz. (50-dma) before $1,500/oz. comes into play.
Gold Price Forecast Chart (April – December 3, 2019)
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