Gold recap for 24.05.2018
We saw some action from Gold Yesterday after the news that President Donald Trump was canceling the meeting with North Korea as an official letter was sent from the White House to Kim Jong Un. Though this gave a huge setback, the letter was not aggressive, but placing an "open end"as not overthrowing a future meeting or a declaration of conflict. The response from N. Korea was subtle as well as the Korean side stated they will be always open to future contact and face-to-face talk. According to sources, N. Korea has dismantled their nuclear test sites which was requested from the U.S. as a condition for negotiations for peace and unification in the region.
But now with this sharp move from the White House the hope for peace has stalled. I hope for a brief moment. It seems that now they just trowed the bait to North Korea so that they can chase the U.S. as a puppy wanting face-to-face meeting.
These sharp changes in sentiment made a huge negative impact on public opinion with instant reaction. Regarding market reactions, stocks fell sharply as all of the sudden Trade war and war fears settled again in the minds of investors. Only Gold found this as an opportunity to make a sharp climb up as money went to the safe heaven place. Price opened at 1293.740, initially there was a move down towards the low of 1292.720, after the news jumped to a high of 1306.550 and closed above 1300 at 1304.550. The price for couple of days tested 1287.937 and made couple of false breakouts. The news were the positive catalyst that was needed from Gold to reverse above 1300. Price touched the Daily 200EMA and closed right on top of it. For now the sentiment is positive for the Gold and we may see reaching 1306.591 and move beyond to 1310-1315.
If the DEMA200 holds we can concur that longs will be much favored when trading Gold. Looks for adequate bottoms to buy and watch for sentiment changes.