Gold's decline may be more of a ‘breather than a breakdown’ after inflation data, trump’s tough talk on china

Gold's decline may be more of a ‘breather than a breakdown’ after inflation data, trump’s tough talk on china

Play all audios:

Loading...

Gold prices traded lower Friday, on track to post declines for the week as well as the month, with that weakness feeling "more like a breather than a breakdown," said Adam Koos, president at Libertas Wealth Management. "On one side, you’ve got inflation data that’s cooling a bit, taking pressure off rate hikes and giving gold a little lift," he said. On the other side, however, there's President Donald Trump’s tough talk on China "hinting at more global tension, which should boost gold as a safe haven, but investors haven’t fully priced that in yet." After a strong run, gold hit some resistance as Treasury yields firmed and the U.S. dollar bounced, but "unless inflation suddenly falls off a cliff, or geopolitics calm down ... I’d expect gold to find support around these levels, especially if uncertainty keeps creeping higher," said Koos.

Gold prices traded lower Friday, on track to post declines for the week as well as the month, with that weakness feeling "more like a breather than a breakdown," said Adam Koos,


president at Libertas Wealth Management. "On one side, you’ve got inflation data that’s cooling a bit, taking pressure off rate hikes and giving gold a little lift," he said. On


the other side, however, there's President Donald Trump’s tough talk on China "hinting at more global tension, which should boost gold as a safe haven, but investors haven’t fully


priced that in yet." After a strong run, gold hit some resistance as Treasury yields firmed and the U.S. dollar bounced, but "unless inflation suddenly falls off a cliff, or


geopolitics calm down ... I’d expect gold to find support around these levels, especially if uncertainty keeps creeping higher," said Koos.