Good news and bad news for gold | 01 November 2019

#SP500:

We are expecting the bullish rally to continue this week! China’s Office of the U.S. Trade Representative said that Beijing and Washington are close to signing a partial trade deal. U.S. President Donald Trump said, “We’re doing very well.” “We’re moving along nicely. We’re dealing with them right now,” he told reporters before leaving Washington for South Carolina. “And a lot of good things are happening with China. They want to make a deal very badly.” Trump’s 2020 election bid is beginning to ramp up and he’s eager to show that his three-pronged economic agenda of tax cuts, deregulation and new trade deals have spurred growth.

Trading recommendation: Buy 3022 and take profit 3038.

#Visa:

Positive corporate reporting will have a positive impact on the value of Visa shares. The reported fourth-quarter and fiscal 2019 earnings of $1.47 per share, beating the consensus estimate by 2.8%. Net operating revenues of $6.1 billion were up 13% year over year. This upside was primarily driven by an increase in all the components of net revenues such as service, data processing, international transaction revenues. Visa expanded its partnership with fintech company Revolut. This London based company will be assisted by Visa to expand its business globally. Per the terms of the deal, Revolut will primarily issue Visa-branded cards in Australia, the United States, Canada, Japan and other markets.

Trading recommendation: Sell 177.50 and take profit 180.16

XAUUSD:

Good news and bad news for gold. The good news is the Federal Reserve's interest rate cut at its October 30 meeting. This is a negative signal for the U.S. dollar and a positive signal for gold, as the assets are inversely correlated with each other. The bad news for gold is the demand for" high yield " assets. Positive trade talks between the United States and China are forcing investors to sell precious metals. Investors are actively buying shares around the world. U.S. President Donald Trump said that talks between China and the U.S. are going very well, as Beijing wants to make a deal.

Trading recommendation: range 1490 -1514

TRADE METALS WITHOUT SWAPS!