Gold is remaining well bought in today’s trading on the back of comments made by US President Donald Trump over North Korea where he noted that words would not work in dealing with the North Korean regime. The market took the words as all talks have finished and the next move may be military action.
The non-farm payrolls and unemployment rate due for release from the US later today is predicted to come in strongly but with all of the Geo political activities going around in the world at the moment it is not expected to pressure the gold price too much,
“Should the dollar go up, if the jobs data turns out to be positive, the downside will be limited at the $1,300 level, given all the uncertainties, including North Korea, that are still around," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
As we said yesterday, gold has now found a solid base just below the $1,300 level and this should remain the new bottom for some time to come. The next target is now the resistance level of $1,340 which was reached in September of last year and also immediately after Donald Trump was elected US President.
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