Trump Tweets About Russia and Gold Prices Fly
Since the beginning of 2018 Gold prices have been stuck in a range between $1300 and $1350. Each time the support or resistance of this range was hit then price sharply reversed to the other side.
However today we have seen a huge daily move in the price. Flying high to $1365 at the time of writing and looks set to break new ground towards $1400.
What triggered this quick gain?
As far as we can tell the only thing which could possibly have sent money dropping into Gold was Donald Trump’s tweet about Russia and the Syria situation.
Just as the USA woke up this morning they were greeted to the USA‘s president telling his Twitter followers that Russia should be ready because,”the missiles are coming”.
It’s a known fact that in uncertain times scared money flows into Gold, this bumping up the price.
Investors see it as a safe haven as opposed to stocks which usually fall hard during any real escalation of military conflict.
Here is what America’s number one had to say.
“Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and “smart!” You shouldn’t be partners with a Gas Killing Animal who kills his people and enjoys it!”
Definitely scary talk right there.
Things should get interesting tonight as the Fed release their meeting minutes from the last FOMC. No doubt anything remotely bearish for the US Dollar will see Gold spike higher again.
Pete Southern is an active trader, chartist and writer for market blogs. He is currently technical analysis contributor and admin at this here blog.
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