Trump Tweet Take's Gold Higher and Causes U.S. Equities to Plummet | The Gold Forecast

Trump Tweet Take's Gold Higher and Causes U.S. Equities to Plummet

August 1, 2019 - 6:07pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action
We are currently flat with no active trades.
 
We were stopped out of our long trade this morning. In at  1440.00  -  Out at 1413.13 fo a loss of $26.87 ($2687 per contract).
 
 
Gold Market Forecast

Extreme volatility is the overall characteristics of gold pricing within the last 48 hours. Yesterday gold sold off modestly and recovered just prior to the press conference by Jerome Powell. During the Q&A, Chairman Powell said that he does it not expect a period of rate cuts to be over an extended period of time sending Gold and US equities dramatically lower. Today we saw gold reverse and trade sharply higher, this is US equities sold off for the second day in a row following a series of tweets by President Trump announcing additional tariffs. What is most interesting and noteworthy is the today we saw a decoupling of gold and equities moving in tandem. In fact, they returned to their normal negative correlation.

Based on activity today I am looking for gold to continue to rally today’s video report will detail our current targets.

Sentiment Indicator:
Gold -> Bullish
Silver -> Neutral
S&P 500 -> Bearish
Bitcoin -> Neutral
Bitcoin fundamentals by Joseph M. Wagner II:

Today BTC futures on the CME are trading up $275 or 2.7% and as of 3:30 PM Eastern daylight Time are fixed at $10,390. Yesterday in trading it broke above both the 10 and 50 day moving average. Today BTC #F opened just at the 10 day moving average and since it has traded higher and at no point in intraday trading did it dip below this average. The 10 day moving average has been resistance ever since July 12th and it seems that yesterday’s rate cut which is the first rate cut BTC futures have ever witnessed was moderately bullish for this market.

For it was on the day of the announcement by the Fed of the rate cut that BTC futures were able to overcome the 78% retracement level as well as the two moving averages (50 and 10-day). Although a lot of yesterday’s gains were achieved before the announcement by the Fed markets were expecting a rate cut and therefore traders could have been acting upon that expectation. Since BTC has never been around for a Fed funds rate cut we will have to wait and see how this pans out, but if BTC can keep climbing for another 5% or so it would be enough to return to a bull driven market.