Upon analyzing the movements of the gold futures in different time charts, I anticipate the gold’s bullish trend is likely to end soon as the bulls are only relying upon the house of cards, created by US President Donald Trump with his impractical policies to prove America Great.
On every front, his policies have generated upheavals on the geo-political front everywhere only to extend American diplomacy to command the global economy which seems to be more or less self-destructive in the current scenario as the tariff trade war could extend beyond limits.
Gold prices seem to be riding on an air sled that does not have wings to fly anymore soon this tariff bubble bust as the US is likely to start selling a major part of its gold reserves only to defend the US dollar, has turned more vulnerable since the joining of US President Trump.
Undoubtedly, Trump intends to include cryptocurrency as part of the US reserves but not at the cost of a weak US dollar but the lower interest rates could be the biggest hurdle as the Federal Reserve is likely to announce one or two rate cuts this year to keep the inflation in control.
Gold shines only when the markets get shaky, and the stagnant growth could generate new challenges for the Fed to go for further interest rate cuts, despite the surging pressure from the Trump administration.
If Trump extends more pressure on the Fed to keep the interest rates high, it will shake the US economy at a crucial time while US President Donald Trump is trying to control global trade.
Upon analyzing the movements of the gold futures in a monthly chart, I anticipate the growing dilemma on further upside in gold prices seems to end this month due to the formation of a bearish doji which signals an advent of a selling spree this month as the current scenario has capped the upside for the gold futures at $3177.
Undoubtedly, the gold futures could attempt to retest this resistance but a breakdown below the immediate support at $3090 will confirm the advent of a selling spree.
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Disclaimer: Readers are advised to take any position in gold at their own risk as this analysis is based only on observations.