After the Numbers
(Kitco News)- The underlying focus for the gold market remains the worryabout a potential trade war with China. It was a matter of time beforePresident Trump's ego forced him to respond to China's comment on Wednesdaythat they had won round one of the tariff salvo. Last night, President Trump proposedanother $100billion to the list of tariffincreases on the Chinese and the gold market promptly jumped higher. Traderslightened up on the position ahead of the employment data today, in case therelease contained an upward revision in wage pressures. The employment datacame out substantially below estimates and wage inflation remained muted. Thathelped the metals initially on thoughts that the Fed may decide to take a wait-and-seeattitude towards higher rates but the main focus had already returned to thetrade war worry and gold was rebid. For traders trying to be ahead of the soundbites, good luck. Buying support lines, with tight stops, and selling resistance has worked to some degree but when youare dealing with a market that responds to the interpretation of tweets -- good luck with setting up a strategy. We seesupport at the $1,322 level, with resistance evident at $1,337.
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