Kitco News: Can We See A Skyrocketing Of Gold Prices? Expert

May 15, 2019 - 3:32pm

 by Gary Wagner

As the trade war between the U.S. and China escalates, all eyes are on how the economy will respond, and one expert said that gold will come out as a beneficiary.

Gary Wagner, editor of TheGoldForecast.com, said that as the U.S. prepares to enact 25% tariffs on $200 billion worth of Chinese goods, gold could rally in the long-term due to the tariff’ inflationary impacts.

“You have to look at what the tariffs will do in terms of consumer prices down the road. These tariffs are put onto the companies that are using those imports. However, they’re going to pass the additional costs back to the consumer,” Wagner told Kitco News. “So that means that the American consumer is going to be paying more, that would be inflationary, it would also set into motion the potential for a recession, but not necessarily a recession.”

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Gold Forecast: Proper Action
TRADE ALERT: 
On Sunday, May 5th, we sent out a trade alert to enter a long trade in June gold. We entered this position at $1285 with a stop at $1268. Today we sent out a trade alert to modify the stop to $1291.13
Maintain long gold at $1285. Maintain NEW stop at $1291.13, and put a limit order or (if available) an OCO (one cancels the other) to sell at $1310
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An OCO order combines a stop order with a limit order on an automated trading platform. When either the stop or limit price is reached and the order executed, the other order automatically gets canceled. Experienced traders use OCO orders to mitigate risk and to enter the market.
 
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A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.
Gold Market Forecast

The trade negotiations which which ended on Friday will certainly lead to more obstacles than previous trade talks. Higher tariffs: 10% to 25%, and the Chinese response, changes the dynamics and has raised the stakes to a new level: Trade War 2.0.

Sentiment Indicator:
Gold -> Bullish
Silver -> Neutral
S&P 500 -> Neutral
Bitcoin -> Bearish