China’s Yuan continued its plunge against the US Dollar after the latest Trump tariff tantrum. The trade war is hotting up and we can expect further Yuan weakness, fueling demand for Gold.
Spot Gold consolidation above $1500/ounce is a bullish sign, while a Trend Index trough above zero indicates strong buying pressure.
We maintain our bullish outlook for Gold, with a target of the 2012 high at $1800/ounce.
The All Ordinaries Gold Index surprised with a fall despite the weakening Aussie Dollar. Penetration of the rising trendline warns of a correction but the primary trend remains upward. A Trend Index trough that respects the zero line would confirm this.