Gold reaches its highest level in more than 3 months as a safe haven destination trading at $1328 troy ounce amid Fed’s latest rate cut and after Trump’s announced plans of placing tariffs on all imports from Mexico.
We have seen some significant moves of the gold prices in the last week or so, as a result of the U.S. President escalating the trade wars once again with Mexico, causing a huge volatility in the markets and an inflow of the gold prices of over $50 move.
Investors are keeping their eyes open later on this week, the ECB announcement this Thursday and NFP on Friday as well. Federal Reserve Chairman Jerome Powell said in a speech overnight that the central bank will do what it takes to retain the expansion of the U.S. economy, amid U.S. President’s trade wars with China and Mexico.
How would the markets behave by the end of this week, will the gold remains bullish or will see a correction of prices towards a bearish move?