Gold: Easing Geopolitical Tensions Push Gold Lower
Growth Aces | Aug 15, 2017 07:35AM ET
GOLD: Easing geopolitical tensions push gold lower
Macroeconomic overview: Gold prices fell today as easing tensions between the United States and North Korea pushed investors to seek riskier assets such as equities.
Asian shares rallied and the dollar firmed, as North Korean leader Kim Jong Un said he would watch the actions of the United States for a while longer before making a decision on firing missiles towards U.S. Pacific territory Guam.
U.S. Defence Secretary Jim Mattis however warned on Monday that its military would be prepared to intercept a missile fired by North Korea if it was headed to Guam.
Safe haven flows into the yen and gold has fallen a little bit because of improved risk appetite in the market. Also weighing on the yellow metal was the prospect of another increase in U.S. interest rates this year, with one influential Federal Reserve member backing the move. New York Fed President William Dudley expects to raise interest rates once more this year, and to soon begin shedding some of the Fed's bond holdings.
Technical analysis: Spot gold may fall more to 1,261 per ounce, as it has broken a support at 1,274.
Short-term signal: Profit taken on XAU/USD long today, but smaller than assumed. In our opinion a fall to 1,261 could be an opportunity to consider another long position.
Long-term outlook: Bullish
Source: GrowthAces.com - your daily forex trading signals
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