U.S. Stocks Plummet as Gold Moves Closer to $1500 | The Gold Forecast

U.S. Stocks Plummet as Gold Moves Closer to $1500

August 5, 2019 - 6:08pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Today we sent out a trade alert,

Trade Alert: Buy December Gold at The Market. Small dip in gold prices have taken futures off of the high today of 1481.. Buy gold AT THE MARKET current is $1474.40. Stop @ 1410.13

Maintain long gold  at 1474.40 (current 1283) and stop.

Gold Market Forecast

With the current fundamental forces moving the market, it is likely that the trade war will deepen before we see any sort of resolution. Beginning on Thursday with Trumps announcement to initiate tariffs on the remaining $300 billion worth of imports, which was followed by a Chinese response in which they have pledged not to purchase agricultural products this crisis has absolutely deepened and move farther away from resolution of this conflict. We believe that as long as these fundamentals exist in the marketplace we could see continued pressure in US equities and gold acting as a safe haven asset and moving to higher ground above $1500 per ounce.

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

Bitcoin after achieving $10,700 in the spot markets on Friday traded quietly throughout the weekend until late night Sunday when a rally that is still in place took it to $11,700 throughout trading Monday.

In the CME’s futures market BTC #F this move created a $500 gap from Friday’s close to Monday’s open but most of the gains were witnessed intraday as they are currently near the highs of the day at just under $12,000 as of 4:30 PM Eastern daylight Time.

 It is quite clear that the nearly 13% jump in value was in correlation to news of the U.S. China trade tensions specifically the devaluation of the Chinese Yuan. It seems as though we are witnessing the immediate effects of a flight from cash amongst Chinese nationalists. This is more likely the cause for the jump in pricing Monday as the Yuan dropped nearly 7% this weekend. There is also the less likely scenario of a flight from U.S. equities as the Dow was down nearly 900 points on the low.

One thing can certainly be said and that is that the current U.S./China trade tensions are certainly having some positive effect on BTC pricing and enough to take the crypto currency back into a bullish mode at least for now.