Gold and North Korea

Many say that gold grows because of the Korean crisis. Only partially true.Gold has changed the great downward trend at the end of 2015. The Korean crisis has only help to kept gold in a range. Korea is trying to make force demonstrations with its missiles, threatening to attack Guam, and Trump responds to other threats of war. It seems the last few days are showing signs of relaxation of the tense situation.

However, as you can see in the next  chart, these actions have not influenced decisively. Gold tried twice this year to break the psychological level at 1300. Looks like we’re in the third attempt. The price is kept farther from the descending trend line from the historical maximum, and the correction on the last climb attempt was stopped by the minor downward trendline.

I think we can see soon an another rally for Gold, with an attempt to touch 1337$/oz. Let’s see the future.



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