Gold: Potential double bottom in play
Today is again one of those days where trade war concerns have brought small interest for gold. We know one thing for certain that Trump is serious with respect to trade tariffs on China. Once again, the counter reaction from China is expected and that itself would have tendency to escalate the tensions further. So may be stay bullish on gold for a little longer.
The Fee hasn’t paid much attention to trade war. We do think if the current situation continues at this pace, the prospects of two rate hikes may be under jeopardy.
Technically speaking, the price has formed a double bottom which is a reveral pattern. This usually triggers bullish move, however from the balance of the power, we can that bears are still holding the ground. If the price starts to move higher, it would have to face the first resistance at 1240 mark. a break of the downward trend line would be a bullish sign.