Gold gained on reports President Trump is planning to impose tariffs on $200 billion worth of Chinese imports, possibly as soon as next week. As concerns weighed on the currency markets, Gold futures ticked up to $1,2115/oz (+0.6%).
Despite this recent upswing, the bear trend that has been the longest month on month loss since 2013, making some analysts still favour shorts.
“We think that the spate of the more consequential news headlines we are seeing of late will likely force another dollar rally and conceivably pressure gold prices lower,” said INTL FCStone analyst Edward Meir. “We would therefore favour the short-side for the time being, especially going into the long Labor Day weekend in the U.S.”
In theory another dollar rally, would certainly weigh on Bitcoin and crypto markets in general, although of recent months 6k has proved a strong demand area due to cost of production.
We will continue to monitor Gold and BTCs beta to the dollar index, in case of a change in correlation.