Gold and the trade war

The Dollar Index continues to consolidate between 88.50 and 91. Despite talk of a trade war with China, a rising Trend Index warns of growing support. Breakout above 91 would indicate that the primary down-trend is weakening. Breach of support at 88.50 is less likely but would signal another decline.

Dollar Index

A rising Dollar would weaken demand for Gold. Breach of support at $1300/ounce would warn of another test of primary support at $1250. But breakout above $1350 remains as likely and would signal another primary advance.

Spot Gold

A lot will depend on performance of the Dollar as the threat of trade tariffs escalates.

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