Safe-Havens Rally Into Close

Posted Friday, September 27, 2019 by
Shain Vernier • 1 min read

Late-week sentiment toward safe-havens has turned positive, led by new trade war threats from the White House. About an hour ago, reports began to surface that capital restrictions may be put into place against investors in Chinese corporations. As with any trade war-related news item from the Trump administration, traders have quickly taken a risk-off stance to the markets.

With only a few hours left until the weekly close, the DJIA DOW (-82), S&P 500 SPX (-17), and NASDAQ (-86) are trading to the red. Subsequently, the safe-havens have garnered beneficial treatment, with gold, the Swiss francand Japanese yen posting late-day gains.

Safe-Havens Spike Ahead Of Weekend Break

Since the fresh injection of trade-war angst, December GOLD futures have put in a solid rally. Values are back above 1505.0, paring the damage from an early day bearish trend.

December Gold Futures (GC), Daily Chart

Here are two levels to watch as we roll into Monday’s session: 

  • Resistance(1): Bollinger MP, 1514.7
  • Support(1): Spike Low, 1490.7

Overview:  One item worth noting is that China’s Caixin Manufacturing PMI (September) is due out Sunday evening. The figure is expected to drop from previous levels. Traders will be watching this number closely, attempting to measure the impact of the ongoing trade war on the Chinese manufacturing sector.

Going into the final trading day of September, there is an abundance of uncertainty in the markets. Impeachment proceedings and potential U.S./China trade war escalations top the list of concerns. Given the current news cycle, it will come as a surprise if the safe-havens do not continue to gain traction as October approaches.

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