Gold Breaks Higher as North Korea Fires Missile Over Japan

Good morning traders,

Well, I use the word good in the loosest sense of the word after North Korea launched a ballistic missile this morning that flew over the northern Japanese island of Hokkaido.

With markets just starting to ignore the current NK regime, they certainly took notice again today with Japan forced to issue take cover notices to their citizens in what is being described as the most brazen provocation under Kim Jong Un’s five-year-long rule.

Trump talked the talk and it looks like Un has essentially tried to call his bluff. Where we go from here, I’m not sure but markets aren’t just taking this as routine, as you can see by the price of Gold going gangbusters on the charts below.

First up, let’s take a look at the significant weekly level that is now into the rear-view mirror:

XAU/USD Weekly:

Click on chart to see a larger view.

Taking a step down into the daily charts, if you remember from last week, we were watching gold hugging a daily trend line that you can see in that link. I’ve removed the line because price didn’t break down and now all that matters is the fact that it’s above this horizontal level:

XAU/USD Daily:

Click on chart to see a larger view.

Is this the scenario that you’re looking for?

Your move Trump… Your move…

Best of probabilities to you.

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the forex trading account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Source: Vantage FX Blog