Gold prices jumped suddenly yesterday as Donald Trump’s twitter account barked again. This time it was toward North Korea, whom, you may remember, has been on a missile-testing binge of late. Shortly after The Donald said he would respond with “fire and fury like the world has never seen” if North Korea doesn’t stop its escalations soon.
Following a poor morning showing, gold prices rallied in New York following this latest outburst by The Donald. The 5-day chart clearly shows GLD weakening, only to climb out of its pit and is heading back toward resistance.
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That, folks, is what we call “geopolitical instability.”
Here is the 6-month chart so you can see the technical picture forming:
Now, do we know what will happen next? No, of course we don’t. When two of the most highly unpredictable world leaders clash, no one knows the outcome for sure. It’s all a game of checks, balances, and guesses. Your Gold Enthusiast only hopes it all doesn’t end with more shooting and innocent lives lost.
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With gold prices rising — Is this a good time to jump in and buy some? If you don’t have any, it’s not a bad time to buy a little. It’s probably not a great time to buy a lot. If either side backs down gold is likely to slide very suddenly. But if someone fires anything bigger, well, gold is likely to jump. Along with everyone’s nerves.
The technical picture says “buy some” if GLD breaks above 121, which your Gold Enthusiast would interpret as “buy some if GLD hits 121.25”. But he wouldn’t throw the farm at it.
In the meantime we’re keeping our eye on it all, fingers crossed. For more of the latest gold prices details related to Trump’s threat on North Korea, view the video below.
Signed, The Gold Enthusiast
DISCLAIMER: The author has no positions in any mentioned security. The author is long NUGT and JNUG and may add to or sell these positions in the next 48 hours.
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