This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
Its been a frustrating week for gold bulls. What started out with a promising rally has ended with a disappointing sell-off as a resurgent USD weighs on price. Gold initially traded strongly to the upside at the start of the week.
News that President Trump was considering tariffing the remaining $300 billion of Chinese goods increased safe haven inflows. Gold traders reacted to tumbling equity markets. China responded by applying its own set of 25% tariffs on $60 billion of US goods thus exacerbating this risk-off tone.
Furthermore, news that Iran had attacked four Saudi Arabian oil tankers in the Middle East compounded fears of conflict in the region as US warships head there. At the beginning of the week, the US dollar was trading lightly and risk aversion seeped the markets. Gold prices were firmly higher, breaking out to fresh monthly highs.
However, following the initial collapse on Monday, risk appetite recovered firmly over the week. Equities were trading back up to last ...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.