US Economy Determines Gold's Next Direction
Gold has soared again and tested the $3,400 per troy ounce level amid the same fundamentals surrounding the tariff war triggered by US President Donald Trump.
Economic data from America this week and next week will be the answer to everything that has been predicted or anticipated by the Fed which has caused concern and uncertainty in the US economy. These data will later show how far the US economy has survived the ongoing tariff war, especially with China.
This week, data will be released from manufacturing and services in America, while next week employment will be the main focus indicating which direction the US economy will go.
With poor predictions from many market players about the US economy which is expected to experience slowing growth and increasing inflation which has pressured their currency, it is not impossible that gold will continue to advance to touch $3,400.
However, even though the fundamentals continue to support gold to set a new record, traders must pay attention to several technical indicators that have been in an overbought position which may cause a technical correction in the short term, especially if supported by profit taking actions.
Source : (mrv@Newsmaker)
