Gold price could take the next leg up after the China holiday end which means it’s a compelling long entry right now.
As a reminder, trader Erik sent in this awesome article on Zerohedge that correlates the gold price to the China gold holiday over the last few years. You can read the article here.
China will be back in business on October 9, 2019, and so now may be a good time to go long gold.
I have moved back into gold with my slow moving retirement money.
The daily gold price shows a consolidation in a slight downtrend channel over the last 4 weeks.
The other issue contributing to the future upside for the price of gold is the trade war. Whenever negotiations are on, the market usually ends up going down and the gold price going up. Folks, this is a battle between capitalism and communism. As I have said for nearly a year now, there will be no deal as long as China’s communist regime stays in power. For example, President Trump is asking for China to not commit IP theft but China steals IP because they need to own the means of production in a communist society.
More China Blacklisted Companies
Just yesterday, on Monday, October 7, 2019, Wilbur Ross, the US commerce secretary, announced his department was adding 28 Chinese groups, including eight artificial intelligence tech companies and 20 government entities, to the entity list, which will require US suppliers to obtain a special licence to continue selling to them.
The commerce department said the organizations had been targeted for their involvement in human rights abuses against Uighurs and other predominantly Muslim minorities in Xinjiang province.
Apparently Apple and other US tech companies can’t be moral enough to not sell electronics equipment to China, even when they know its being used to round up millions of people and throw them in detention camps. I wrote about the issue with Apple here.
This new round of Chinese companies which are being blacklisted is not good for the U.S. and China negotiating a fair trade deal. I wouldn’t be surprised to see the Chinese pull out of talks completely. This again is good for gold.