Gold Prices: US Data Exerts Downward Pressure
Good economic news out in the US is really putting the pressure on gold prices. April retail figures indicate an increase of 0.3 percent. Not much, but enough to stave off fears of declining consumer spending. And US-China trade talks resume in Washington DC, which contributed to a rise in the Dollar and a drop in global stock markets.
That may sound strange, but if the US and China hammer out some differences, there will be less business going to other countries, such as Japan and Korea. In the end, a lot of business is zero-sum – someone gets the sale and someone else doesn’t.
As a result, gold is testing the 1300 level this morning. This Gold Enthusiast is on record as saying 1260 is the next level down that must hold, in the end the market gets the final say. Today’s featured article gives more insight in the US-China trade talks which will probably be the big market mover this week.