1. Aussie Gold Breaks Through $2000 For The First Time in History!
For the first time in history, gold broke through AU$2000 an ounce on Friday.
“The sustained growth of the Australian gold price can be explained by a number of factors regarding volatility in the global financial market…One big factor is the US-China trade war, as it gets uglier, we expect to see more demand for people to hold gold…We’re seeing the Australian dollar decline over time because of gradually worsening economic data”
With another two interest rate cuts due before the end of the year, investors are afraid of losing real wealth to inflation.
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2. Fed’s Decision & Gold’s Reaction
A lot of the exciting news surrounding gold this week boils down to the recent Fed decision to cut rates, which rose to a 100% probability in July.
With the economy weakening and headed towards a probable recession, the markets are convinced that the data the Fed sees between now and July is going to be bad.
How has did this impact gold? It surged above $1390 and continues to remain strong.
3. Next Levels to Watch for Gold
With the announcement of possible Fed rate cuts starting in July, gold has entered into a major rally. In the video below, Saxo Head of Commodity Strategy, Ole Hansen, provides an analysis on the challenges gold is facing and the next levels to watch:
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4. US & Europe Currency War Causes Gold to Soar
German author and market maniac Holger Zschaepitz just warned: “Looks like the start of a currency war. Euro dropped after dovish Draghi and jumped after dovish Powell. Now trades >$1.13.”
As the global economy continues to grow increasingly fragile, the addition of a currency war on top of Trump’s trade wars will only make things worse. As a result, gold is looking like a very attractive investment.
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5. Gold Breaks Through US Resistance Level
With US trade wars, potential currency wars and the Fed’s recent announcement that rates could be cut as soon as July, gold finally broke through the 5-year, key resistance level and is headed towards $1400!
Technical analysis below shows that if gold closes above $1400 by the end of June, we could be headed towards another large bull market.
