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A Little Off Two-Week Lows

GOLD

Gold deals ~$3/oz firmer at typing to print ~$1,765/oz, a little below session highs, but continuing to edge away from Wednesday’s worst levels at typing.

  • An earlier blip higher in the precious metal was facilitated by initial worry from some quarters re: geopolitical risks after news that formal U.S.-Taiwan bilateral trade negotiations will begin later this year, with the event ultimately providing little by way of meaningful direction for the space.
  • To recap Wednesday’s price action, the precious metal hit fresh two-week lows ($1,759.8/oz) on an uptick in the USD (DXY) and U.S. real yields, with a minor bid from the market’s dovish interpretation to the latest FOMC minutes evaporating, seeing gold close ~$14/oz weaker for a third straight lower daily close.
  • Measures of investor interest remains weak, with known ETF holdings of gold compiled by BBG declining for a fourth consecutive session on Wednesday, while the SPDR Gold Trust’s (GLD) holdings of gold has fallen to its lowest level in seven months.
  • From a technical perspective, gold maintains a firmer tone after the breach of trendline resistance at $1,794.6/oz previously. However, a stronger reversal amidst recent moves lower may threaten the bullish theme, with initial support at $1,754.4/oz (Aug 3 low, key short-term support) in focus. On the upside, initial resistance is seen at $1,807.9/oz (Aug 10 high and bull trigger).
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Gold deals ~$3/oz firmer at typing to print ~$1,765/oz, a little below session highs, but continuing to edge away from Wednesday’s worst levels at typing.

  • An earlier blip higher in the precious metal was facilitated by initial worry from some quarters re: geopolitical risks after news that formal U.S.-Taiwan bilateral trade negotiations will begin later this year, with the event ultimately providing little by way of meaningful direction for the space.
  • To recap Wednesday’s price action, the precious metal hit fresh two-week lows ($1,759.8/oz) on an uptick in the USD (DXY) and U.S. real yields, with a minor bid from the market’s dovish interpretation to the latest FOMC minutes evaporating, seeing gold close ~$14/oz weaker for a third straight lower daily close.
  • Measures of investor interest remains weak, with known ETF holdings of gold compiled by BBG declining for a fourth consecutive session on Wednesday, while the SPDR Gold Trust’s (GLD) holdings of gold has fallen to its lowest level in seven months.
  • From a technical perspective, gold maintains a firmer tone after the breach of trendline resistance at $1,794.6/oz previously. However, a stronger reversal amidst recent moves lower may threaten the bullish theme, with initial support at $1,754.4/oz (Aug 3 low, key short-term support) in focus. On the upside, initial resistance is seen at $1,807.9/oz (Aug 10 high and bull trigger).