Interest rates may or may not be cut by the Federal Reserve this year. Federal Reserve chairman’s testimony before the US Congress yesterday indicated no hurry in interest rate cut. The US economy is growing or healthy. Trump’s “Trade Wars” can generate more employment in the USA at the cost of rising inflation. Inflation criteria (for interest rate decisions) may be reduced by the USA to support ongoing strength in the US economy.
The global focus will be on the economic impact of “Trade Wars” for the next two months to three months. It is all the guesswork and one day at a time for assessing the impact of “Trade Wars”.
As a kid, I had admired the “Star Wars” movie. As a teenager, I saw the “Gulf War”. Now I am seeing the beginning of a new war called the “Trade Wars”. The winner will be physical gold and only physical gold in this “Trade Wars”.
Some may disagree with my verdict of physical gold as the winner as bitcoin and crypto currencies may outperform physical gold in the next five years. Cryptocurrency is electronic money that is under the control of respective coders (mainly the USA.). In the long run, I will be at the mercy of politicians if there is an armed conflict between major world powers. So my preference will always be physical gold.
Day traders and jobbers just trade in the technical today, tomorrow, row, and next week. Worrying too much about “Trade Wars” and making short-term trading decisions on “Trade Wars” could be a big gamble on a bad day.
CME GOLD APRIL 2025 – Current price $2913.90
- Gold April (2025) has to trade over $2901.00 to rise to $2963.10, $2995.00 and more.
- A mild sell-off will be there if gold April trades below $2901 today.
- $2871.00 is the key support for the rest of February.
- Views are intraday.
Disclaimer
- The investment ideas provided is purely independent view point and are solely for collective learning and for academic interests. There is no commercial benefit accruing or have deemed to accrue to me out of providing such investment ideas.
- The investment ideas shared here cannot be construed as investment advice or so. If any reader is acting on these advices, they are requested to apply their prudence and consult their financial advisor before acting on any of the recommendations made here. I am not responsible to anybody in the event of profits and losses (if any) upon acting on such advice.
- I hope that our reader is aware about this well aware of the risk involved in trading in commodity derivative trading.
Disclosure: I trade in India's MCX commodity exchange. I have open positions in India's MCX commodity future. I do not trade in CME future or OTC spot gold and spot silver.
NOTES TO THE ABOVE REPORT
- ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
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- PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
- PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
- THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
- ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.
- ALL NEWS IS TAKEN FROM REUTERS NEWSWIRES.
- TECHNICAL ANALYSIS IS DONE FROM TRADINGVIEW SOFTWARE
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