Gold jumped overnight by more than 1% to USD1,515/oz and AUD2,238/oz on the back of
1) POTUS indicating he doesn't need a trade deal with China before 2020 election [ rather he wont get one ] and also saying he is "not looking for a partial deal" (which I earlier said could be likely if he was playing the TV reality game) - translation- he means business and he now thinks it would be protracted and maybe his insider poll numbers tell him he still stands good with his crowd without a deal. On this, his statement would likely result in the Dow scaling back the gains made this month as the market digest the implications of his latest twit.
2) China trade negotiators cancelled their US farm visits returning home earlier than scheduled [ 1 above probably followed soon after the cancellation]
3) US sending more troops to the Middle East, signalling heightened tensions in the gulf
Meanwhile, Goldman Sachs warned investors to buckle up as the market is about to go wild again in October.
I think next week may be the last short window to jump on the gold gravy train before the next upleg. Our local gold producers reached its recent short term highs around end July to first week of Aug when gold in AUD/oz was less than AUD2200/oz. We have now surpassed that level, thanks to renewed optimism in gold and the depreciation of the AUD, and they should be heading back to their year's high.
