- summary:
- The price of gold fell slightly on Monday, but it is difficult to see a negative side extending with a commercial tariff that provides fuel.
The price of gold fell during the European trading session on Monday, when it reached $ 2,906 an ounce in the immediate market, with its daily revenues by -0.3 % at the time of writing this report. The commodity is a major axis amid commercial tariff wars characterized by some of the world’s leading economies.
However, recent modifications indicate the policies of the American commercial tariff carried out by President Donald Trump to the possibility of negotiations and a decision in the coming weeks. It can reduce the high price of gold in the medium term.
Trump may have disturbed the investors on Sunday after commenting that the American economy was “in a transitional stage” and hesitates to refuse the possibility of recession. The largest economy in the world may actually flash signs of a basic weakness on Friday after issuing expected salary salary numbers (NFP) and a 0.1 % jump in the unemployment rate in February.
Meanwhile, China continues to save fuel for the high price of gold, while maintaining its appetite for yellow metals. The Central Bank of the country bought more than $ 2.1 billion in gold in February expanding its purchase program until the fourth month in a row.
This trend is likely to continue if the war of commercial tariffs continues to escalate. China will begin to impose an import tariff of 10 % -15 % on agricultural products from the United States, including soybeans, pork, sorghum, fruits and vegetables this week. This puts safe gold a haven for the continuation of the upward trend.
Gold price prediction
The gold price axis is preferred at 2900 dollars and the procedure is above this upward bridge level. This first barrier is likely to meet at $ 2,910. However, the control extended by buyers can extend the gains to outperform this level and possibly the second resistance test at $ 2,917.
On the contrary, the procedure of less than $ 2900 will prefer sellers to control. This may see that Xauusd’s pair is decreasing to find initial support at $ 2,894. The bullish direction would be invalid if the price is less than this level. The momentum caused by the declining direction of the second support test can extend at $ 2,890.
