Gold Shines Amid Escalating Trade War, Weakening Dollar
Gold prices rose more than 2% on Thursday (10/4) during the European session, extending the previous session's sharp rise, as a weaker dollar and an escalating trade war between the US and China prompted investors to turn to the precious metal as a safe haven asset.
Part of the dollar pressure was the result of falling US Treasury yields in Asian and European trade. The dollar weakened even as a sharp sell-off in Treasuries caused yields to rise.
Meanwhile, US President Donald Trump said yesterday that he would temporarily lower large import duties on dozens of countries, but raised tariffs on China to 125% from 104%.
Gold prices were up more than 2% at the time of this news release, trading at the level of $3147/oz.
RECOMMENDATION
- Buy if price moves to $3153
- Sell if price moves to $3140
Resistance Level 2: $3165
Resistance Level 1: $3158
Support Level 1: $3135
Support Level 2: $3129
Note:
This article is only an analysis and not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id(yds)
