Gold Prices: US Data Exerts Downward Pressure

Good economic news out in the US is really putting the pressure on gold prices. April retail figures indicate an increase of 0.3 percent. Not much, but enough to stave off fears of declining consumer spending. And US-China trade talks resume in Washington DC, which contributed to a rise in the Dollar and a drop in global stock markets.

That may sound strange, but if the US and China hammer out some differences, there will be less business going to other countries, such as Japan and Korea. In the end, a lot of business is zero-sum – someone gets the sale and someone else doesn’t.

As a result, gold is testing the 1300 level this morning. This Gold Enthusiast is on record as saying 1260 is the next level down that must hold, in the end the market gets the final say. Today’s featured article gives more insight in the US-China trade talks which will probably be the big market mover this week.

 Related: Speculators Are Turning Bullish on Gold – And Here’s Why

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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