Pick Your Morning Headline, Everything's Gold Bullish
(Kitco News) - June 5 - Gold prices advanced in earlytrading Monday. Waking up to the morning news every day in recent monthsdelivers fresh political, economic and geopolitical events that are goldbullish.
From recent news of the FBI Director'sfiring, to weaker-than-expected May employment data to rising tensions in theMiddle East to North Korea missile tests, the headline events are driving goldhigher.
The economic, political and geopoliticalenvironment seems more fragile, tenser and more potentially explosive than justsix or eight months ago. Global investors are turning to gold as a safe-haveninvestment, portfolio diversifier and a tangible asset investment.
Here are just a few of Monday's newsheadlines that create a macro bullish environment for gold:
Several Middle East nations cutties with Qatar -that ratchets up the level of tensions in that explosiveregion. (Gold benefits from geopolitical uncertainty).Former FBI Director heads to CapitolHill for testimony in the ongoing Russia-election meddling investigation.(Political uncertainty and tensions in Washington could derail theAdministration's economic-growth plans).
Trump will launch push for newinfrastructure investment (that's inflationary and likely deficit increasing -both gold bullish).
World Bank forecasts globaleconomic growth to hit 7-year high next year (that's inflationary and goldbullish).
ChartView
The daily chart shows a rising near andintermediate-term price trend for August Comex gold futures. Friday's actionreveals a large "bullish outside day" formation that gives gold bullsthe edge to start the week.
UpsideTarget: Goldbulls are gunning for a test of the $1,300.03 level high hit in mid-April, andthat level is within reach on a multi-day to multi-week basis. On the downside,new support formed on Friday at $1,261.30 and as long as that holds firm, goldbulls have the technical edge.
Once the $1,300 zone is achieved, gold willbecome vulnerable to some backing and filling and a consolidation phase, beforethe next buying wave unfolds. The secondary upside target lies at $1,345.20,the level traded in the post-U.S. presidential election spike higher.
Take the time now to plan your trades andtrade your plans. The gold trend points up.
By The Technical TraderFor Kitco News
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Newsfeedback@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities,securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |