Is The Latest Gold Run Coming From USD Weakness Or Is This A Run For Safety? - Forex News by FX Leaders

Is The Latest Gold Run Coming From USD Weakness Or Is This A Run For Safety?

Posted Monday, July 24, 2017 by
Skerdian Meta • 1 min read

We have seen Gold run higher for two straight weeks non-stop. The last two weekly candlesticks are pretty bullish and they have undone all the work that Gold bears did in the previous two weeks.

But, is this because the USD has been beaten up in the last two weeks or is this because of worsened global economic conditions?

Well, the global economy seems to be doing OK at the moment apart from the UK economy. Yes, it's true that Trump is a headache for the markets, but they already got used to him. Perhaps, in US politics things are escalating too far and the market is getting really worried he will survive his term.

Remember that a few months ago it was all about rhetoric and tweets, while now we are seeing the Russians getting involved and his closest staff members are resigning.

So there's definitely some caution in the markets.

Of course, the USD wekaness has helped, so it's both in my opinion, hence the unstopable run. It broke all the moving averages on the way up, so gold sellers, beware.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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