Apparently gold traders hadn’t seen the steady rise in the USD since Monday, but that’s OK, humans are exuberant critters especially when they’re trading. Here’s the chart for the US Dollar index UUP showing the Dollar’s week.
US-China trade war news was mixed. There was a burst of news that new talks were starting, and China announced they were lifting tariffs on some US products such as electric cars. Specifically, Tesla, because, you know, foreign electric cars are so important to the Chinese economy. (not) One wonders why import electric cars deserve such a break because China has lots of domestic electric car makers (such as Buffett favorite BYD Company) and you’d think China would want Chinese companies getting all the profits.
The bad news side of the trade war is that it creates uncertainty. And as we know, gold prices tend to rise in times of uncertainty.
So we’ll wait out Friday and see what next week brings. Don’t be surprised if Friday looks like a boring sideways day. It won’t be; reactions to small bits of news may give us the cues we need as traders. The market is very news-driven right now, but then it always is, just that the news isn’t always so heated up. And give a thought for people in Florida as they wait to see how big this hurricane will be; hopefully, it’ll be smaller than expected.
The Gold Enthusiast
DISCLAIMER: No specific securities were mentioned in this article. The author is long the gold sector via positions in NUGT, JNUG, a few junior miners, and covered calls on parts of the NUGT and JNUG positions. One of the JNUG covered call options expires at the end of today. Other than that he has no plans to make trades in the gold sector over the next 72 hours.
The SPDR Gold Shares (GLD) was trading at $144.19 per share on Friday morning, up $0.07 (+0.05%). Year-to-date, GLD has gained 16.61%, versus a 10.35% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of ETF Daily News.
About the Author: Mike Hammer
For 30-plus years, Mike Hammer has been an ardent follower, and often-times trader, of gold and silver. With his own money, he began trading in ‘86 and has seen the market at its highest highs and lowest lows, which includes the Black Monday Crash in ‘87, the Crash of ‘08, and the Flash Crash of 2010. Throughout all of this, he’s been on the great side of winning, and sometimes, the hard side of losing. For the past eight years, he’s mentored others about the fine art of trading stocks and ETFs at the Adam Mesh Trading Group.