Bearish rally in the gold market | 27 September 2019

Bearish rally in the gold market


XAUUSD:


We are expecting the bearish trend to continue this week. Central banks of the G20 countries lower interest rates, and this will negatively affect the price of the precious metal. In mid-September, interest rates were put down by the US Federal Reserve, the People’s Bank of China, the Central Bank of Brazil and Indonesia. Lower interest rates will have a positive impact on “high-yielding” assets and a negative impact on “low-yielding” assets. Gold is a “low-yield” asset, a safe haven. We are expecting a psychological level test of $ 1500.


Trading recommendation: Sell 1518 and take profit 1500.


Bearish rally in the gold market


#BRENT:


The Wall Street Journal reported that a full recovery of Saudi Arabia’s oil output will take longer than the kingdom had promised. This is factor will have a positive impact on the cost of oil. High geopolitical tensions will provide additional support to the oil market. The Pentagon has ordered additional U.S. troops to be deployed in the Gulf region to strengthen Saudi Arabia's air and missile defenses. Britain believes Iran was responsible for the attack and will work with the United States and European allies on a joint response, said Prime Minister UK Boris Johnson.


Trading recommendation: Buy 63.15 and take profit 65.74.


Bearish rally in the gold market


#SP500:


U.S. and Chinese officials described the deputy-level trade talks last week, meant to lay the groundwork for high-level negotiations in October, as being "constructive" and "productive". U.S. trade regulators approved 10 out of 15 requests for tariff exemptions by the iPhone maker. China has increased the volume of purchases of soybeans from American farmers. The trade war is having a negative impact on the economic growth of the United States and China. The end of the trade war will have a positive impact on the value of corporate shares. We are expecting the trade war to end in early 2020.


Trading recommendation: Buy 2985 and take profit 3021.


TRADE METALS WITHOUT SWAPS!

 

David Johnson
Analyst of «FreshForex» company
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