Gold Continues The Uptick Amid Escalating Bilateral Disagreement And China’s Reprisal

Gold Continues The Uptick Amid Escalating Bilateral Disagreement And China’s Reprisal

Gold prices spiked sharply yesterday amid China’s retaliation against the tariff imposed by the United States on $200 billion worth of Chinese goods previously which jeopardized the U.S.-China trade talks. The gold prices rose from the level US$1282.06 (Day’s Low as on 13th May 2019 UTC-4 03:00:00) to the level of US$1303.35 (Day’s High as on 14th May 2019 UTC-4 20:00:00) in the spot market.

The market sentiments were boosted resulting in the sudden upside momentum in the gold prices owing to China’s reciprocation to the tariff increase by the United States. China has decided to impose a tariff on US$60 million worth of United States goods from 1st June 2019.

China’s retaliation increased the concern of the global market over risky assets, which in turn, exerted the pressure on other commodities during the yesterday’s evening session, and provided support to the gold prices.

However, the gold prices lost some of its last session evening gains today amid further speculative buy in the dollar. After plunging to the level of 97.04 (as on 13th May 2019 UTC-4 08:00:00), the dollar index recovered sharply to the level of 97.39 (as on 14th May 2019 UTC-4 03:00:00).

The rise in dollar prices exerted the pressure on gold prices, and the prices dropped from the level of US$1303.35 to the present level of US$1297.56 (as on 14th May 2019 UTC-4 03:32:22).

The leverage of the U.S dollar against the Chinese yuan further extended and the dollar rose from the level of 6.8240 yuan (Day’s low on 13th May) to the present level of 6.8856 yuan (as on 14th May 2019 UTC-4 04:05:18).

Sponsored ad by Kalkine

Source: Thomson Reuters; Gold Spot Daily Chart

It can be seen on a daily chart that the gold prices are currently trading above its 7,20,200 days exponential moving averages (EMA), and the daily chart revelled a golden cross over (Bullish Signal) of 7 and 20 days EMA, which establishes a short-term uptrend in gold.

The gold prices in Australia rose amid weaker domestic currency against the U.S. dollar; the prices surged from the level of A$1834.32 (Day’s low on 13th May 2019) to the current high of A$1875.44 (as on 14th May 2019 UTC-4 4:12:36).

The gold miners on the Australian Stock Exchange welcomed the sudden gain in the gold prices, and the share prices of certain companies surged substantially during the day session today.

Evolution Mining Limited (ASX: EVN)

The shares of the company started the day’s session at A$3.480 and inched up on ASX to mark a high of A$3.620 before settling for the day at $3.570, up 7.21% as compared to its previous close.

Source: Thomson Reuters; EVN Daily Chart

Evolution Mining daily chart depicts the gold momentum; the prices spiked today on ASX and started the day’s session with a gap up opening.

Catalyst Metals Limited (ASX: CYL)

The stock of the company surged after starting the day’s session at A$1.900; the stock prices marked a high of A$2.090 before ending the day’s session at A$2.050, up by 12.64% as compared to its previous close.

Source: Thomson Reuters; CYL Daily Chart

Catalyst Metals followed the same trajectory, and the prices spiked today and rose above the 7,20,200 days EMA, which are at A$1.882, A$1.934, A$1.752 respectively. However, the gap between the short-term 7-days EMA and a medium-term 20-days EMA is large, which could possibly offer resistance to the share prices.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Facebook Comments

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here