Source: Economic Events August 9, 2019 - Admiral Markets' Forex Calendar
The next wave of escalation in the trade dispute between the US and China resulted in a squeeze higher in Gold reaching 1,500 USD.
After the somewhat "hawkish" comments from Fed chairman Powell last week on Wednesday (delivering "only" a 25 basis point rate cut and making further easing steps mainly dependent on global economic developments), the newest attacks from US president Trump via Twitter, labelling China a currency manipulator after China allowed the Yuan Renminbi to weaken past the psychologically important line of 7.00 per USD, were the main driver for the precious metal higher.
Technically, the mode in Gold seems a little extended. That said from a risk-reward perspective, a pullback against 1,440/450 USD seems to be an attractive long-trigger, especially since from Monday August 12 through September 5, a bullish seasonal window opens in Gold.
On a daily time frame the mode in Gold can be considered bullish as long as we trade above 1,380 USD:
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between May 10, 2018, to August 8, 2019). Accessed: August 8, 2019, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of Gold fell by 1.7%, in 2015, it fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, meaning that after five years, it was up by 6.4%.
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