Gold markets rallied significantly during the trading session Tuesday after President Trump suggested that the Chinese trade deal could wait until after the election.
If that’s going to be the case, then markets are pretty concerned based upon the reaction.
Gold rallied but are already starting to give back some of the gains above the 50-Day EMA. The market has been grinding lower for a while, and gold needs a more sustainable reason to go long at this point.
Overall, this is a Bullish looking candlestick, but at the end of the day it is difficult to imagine that gold has completely turned the corner as the $1500 mark will cause a lot of resistance in here.
At this point, if President Trump keeps it up, then he could drive gold markets much higher, but 1 thing that we have learned of the last couple of years is that he will only let the markets fall so far before settling back down and trying to massage concerns out of the S&P 500.
He clearly will have seen a selloff, and it will be corrected rather soon by him.
President Trump is a master at manipulating the markets, and only makes these comments as the S&P 500 (SPY) makes fresh highs.
However, we could see a lot of uncontrollable algorithmic selling in the stock markets and send the gold markets to the Northside drastically.
If gold break above the 1500 mark, that could be reason enough to add to any core position, but now gold will trade between 1500, the Top of the range, and 1450 on the Bottom of the range.