So far gold is doing what I wanted to see happen, but it’s so choppy that it can be part of a diagonal decline and never breakout or see $1350. Gold looks like it’s in a correction but I also have to keep my diagonal options open.
A little crash in the USD sure helps to fire up the emotional investors as they charge into gold. When you hear investors running to gold as a safe haven hiding spot, then this is an emotional decision and not a logic longer-term investment.
At this daily chart scale, gold has not bounced off the 200-day MA, which will be important to watch.
I have made some changes to the wave count and we will see if a new bearish low happens.
It also depends on how bullish or how bearish the commercial hedger’s COT reports are tonight.
I’m sure President Trump’s duties slapped on Mexico was a surprise, but really folks what do you expect in a trade war. In 1930 the trade war had the same effect when they signed the Smoot-Hawley Tariff Act.
Small tariff wars have never really stopped as many presidents also loved to enforce duties.