Markets traditionally kick back into high gear after Labor Day, but one should not underestimate this last week of August. Trade talks remain at the forefront and last week’s newest round between the United States and China failed to yield true substance. However, the purpose was to delay the imminence of the third wave of tariffs in which the White House would impose $200 billion on Chinese goods; this, in our opinion, would be the official start of a trade war.
In our regular gold trading alerts, we focus on the short- and medium-term outlook and we rarely discuss the very long-term issues or price targets. The reason is simple – the long-term issues and price targets don’t change often, so usually, there’s little new to say about them. Consequently, it’s been a long time since we last discussed our view on gold’s explosive upside potential. In fact, it’s been so long that those who do not take the time to read our analyses thoroughly and those who have been reading them for only a short while may think that we are bearish on gold in the long run. Or that we’re perma-bears.
After a rough start to the week, Asian stocks seem to have found some support as the Turkish Lira steadied below 7 per dollar. Japan’s Nikkei 225 rose 1.8% with all sectors in green territory as the Yen gave up some of yesterday’s gains. Australia’s ASX 200 and the Korean KOSPI also edged higher but gains were limited.
Global equity bulls were lingering in the vicinity during Tuesday’s trading session as investors diverted some attention from trade war concerns to focus on strong U.S corporate earnings. Asian stock markets have ventured higher following the robust earnings-led gains on Wall Street overnight.