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Gold Recovers from a 7 Month Low Price Point

goldGold prices edged up this morning as the yellow metal moved off a 7 month low thanks to a slightly softer dollar. The bullion had hit this seven month low during the previous session on Friday.

As of 1 am, spot gold (XAU/USD) was trading higher. The metal gained 0.1 percent to trade at $1,242.01 an ounce. On Friday it hit its lowest price point since December 12 at $1,236.58 an ounce.

U.S. gold futures, for August delivery, were also higher. This contract was up 0.1 percent to trade at $1,242.40 an ounce.

The dollar set a 10 day peak on Friday. Today the recovery stalled as the dollar index was just below that price point.

Gold Trades eye the Trump / Putin Summit Scheduled for Today

Today, Preside Donald Trump is scheduled to meet with Russia’s Vladimir Putin.  President Donald Trump rattled his allies again by labeling the European Union a “foe” when it comes to trade.

The European Union will have it’s an annual meeting with China today. The EU and China will look at new overtures, but the EU will counter an anti-U.S. alliance. China is looking at the European Union to counter new U.S. tariffs.

President Trump said that the United States and the United Kingdom could secure a “great” post-Brexit trade deal. Trump praised UK Prime Minister Theresa May. This contradicted his insults that were publicized hours earlier. Especially on her handling the Brexit.

The Federal Reserve noted “solid” U.S. economic growth during the first half of 2018. This was in the Fed’s semi-annual report to Congress. The Fed also stood by their plan to raise rates gradually.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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