Gold, silver rally on downbeat U.S. economic data

Gold and silver prices are higher in midday U.S. trading Tuesday, with gold hitting a three-week high and silver a four-week peak. A much weaker-than-expected U.S. jobs turnover report (JOLTS) and a much lower-than-expected consumer confidence index report prompted fresh buying interest in the precious metals. The U.S. dollar index sold off and U.S. Treasury yields dipped after the data. Both reports fell into the camp of the U.S. monetary policy doves, who think the Fed has raised interest rates enough to effectively slow down U.S. economic growth. This was the start of a big week for U.S. economic reports. December gold was last up $17.30 at $1,963.90 and December silver was up $0.51 at $25.115.

U.S. stock indexes are higher at midday, also boosted by the weaker U.S. economic data. Asian and European stock markets have been lifted early this week by news Monday that China cut a key tax rate and pledged to shore up its capital markets.

The busy U.S. data week is highlighted by Friday’s employment situation report for August from the Labor Department. The key non-farm payrolls number is expected to come in at up 170,000, compared to a rise of 187,000 in the July report.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are a bit firmer and trading around $80.50 a barrel. The benchmark U.S. Treasury 10-year note is presently fetching 4.131%.

Technically, December gold futures prices hit a three-week high today. Short covering and bargain hunting were featured. Bears still have the overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart has been negated and prices are starting to trend up. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,913.60. First resistance is seen at $1,975.00 and then at $1,985.00. First support is seen at $1,950.00 and then at this week’s low of $1,941.10. Wyckoff's Market Rating: 4.0.

December silver futures prices hit a four-week high today. The silver bulls have the overall near-term technical advantage. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $25.82. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at $25.50 and then at $25.82. Next support is seen at today’s low of $24.555 and then at $24.31. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed up 405 points at 383.25 cents today. Prices closed nearer the session high. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 403.75 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 367.00 cents. First resistance is seen at last week’s high of 384.25 cents and then at 387.00 cents. First support is seen at today’s low of 378.70 cents and then at 376.55 cents. Wyckoff's Market Rating: 4.0.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Gold rallies on short covering, perceived value buying

Gold prices are posting decent gains and silver prices are slightly up in midday U.S. trading Monday. Short covering by the futures traders is featured in gold, along with some perceived bargain hunting. The silver market is seeing some technical buying amid friendly near-term charts. December gold was last down up $13.30 at $1,953.30 and December silver was up $0.137 at $24.72.

This is the unofficial last week of summer for the U.S. Look for the marketplace to become more active next Tuesday, following the three-day U.S. Labor Day weekend holiday. This is a big week for U.S. economic reports, so traders and investors are likely to become at least a bit more tuned in as the week progresses.

Asian and European stock markets were mostly higher in overnight trading. U.S. stock indexes are modestly higher at midday. News that China cut a key tax rate and pledged to shore up its capital markets boosted trader and investor attitudes in Asia.

The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are slightly higher and trading around $80.00 a barrel. The benchmark U.S. Treasury 10-year note is presently fetching 4.214%.

The U.S. economic data pace picks up rapidly on Tuesday and it’s a big data week, including the employment situation report on Friday.

Technically, December gold futures bears still have the overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,963.50 and then at $1,975.00. First support is seen at today’s low of $1,940.10 and then at Friday’s low of $1,931.00. Wyckoff's Market Rating: 3.5

December silver futures bulls have the overall near-term technical advantage. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $25.82. The next downside price objective for the bears is closing prices below solid support at the August low of $22.585. First resistance is seen at $25.00 and then at $25.345. Next support is seen at Friday’s low of $24.31 and then at $24.00. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 95 points at 379.35 cents today. Prices closed nearer the session low. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 403.75 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 367.00 cents. First resistance is seen at today’s high of 382.90 cents and then at last week’s high of 384.25 cents. First support is seen at Friday’s low of 376.55 cents and then at last week’s low of 372.15 cents. Wyckoff's Market Rating: 3.5.

By

Jim Wyckoff

Time to Buy Gold and silver

Tim Moseley

Gold prices treading water as Powell provides little guidance on monetary policy during Jackson Hole speech

The gold market continues to tread water below $1,950 an ounce as it finds little direction from the latest comments from Federal Reserve Chair Jerome Powell.

Friday, Powell provided little new information on the central bank's monetary policy, saying that the Federal Reserve will remain cautious as it focuses on bringing inflation back to its 2% target. The comments were made during the annual central bank retreat at Jackson Hole, Wyoming.

Powell said that while the central bank can continue to raise interest rates if inflation remains stubbornly elevated, he added that monetary policy will remain data-dependent.

"As is often the case, we are navigating by the stars under cloudy skies. In such circumstances, risk-management considerations are critical. At upcoming meetings, we will assess our progress based on the totality of the data and the evolving outlook and risks. Based on this assessment, we will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data," he said.

The gold market is not seeing much reaction to the comments. December gold futures last traded at $1,947.10 an ounce, unchanged on the day.

Adam Button, head of currency strategy at Forexlive.com, described Powell's comments as "a bit of a dud."

"These are all the same things that he said after the last FOMC, and they echo what most other Fed officials have said. Perhaps the market is keying on the 'carefully' comment, which might be seen as dovish. The dollar kicked lower initially, but I just don't see that continuing based on the headlines," he said.

However, Jim Wyckoff, senior technical analyst at Kitco.com, said that he said Powell struck a more hawkish tone as he focused on the central bank's inflation target.

"Twelve-month core inflation is still elevated, and there is substantial further ground to cover to get back to price stability," said Powell in his remarks. "Two percent is and will remain our inflation target. We are committed to achieving and sustaining a stance of monetary policy that is sufficiently restrictive to bring inflation down to that level over time. It is challenging, of course, to know in real-time when such a stance has been achieved."

Powell also noted that the central bank still expects to see weaker economic growth as it cools the economy to bring consumer prices back down to target.

"Getting inflation sustainably back down to 2 percent is expected to require a period of below-trend economic growth as well as some softening in labor market conditions.

Marc Chandler, managing director at Bannockburn Global Forex, said that Powell didn’t cover any new ground; however, he added that markets are still pricing in a rate hike in November.

“Powell spent a little more than 10 minutes summarizing what has taken place in the past year, with little forward guidance,” he said.

By

Neils Christensen

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Gold needs weak economic data as a catalyst to push prices higher next week

The gold market maintains its resilience in the face of significant headwinds; however, precious metals are in desperate need of a catalyst to push prices out of their current downtrend, according to some analysts.

After four weeks of losses, gold is heading into the weekend with a modest gain. December gold futures last traded at $1,9410.90 an ounce, up 1.27%. Despite the gains, analysts note that the gold market is generally stuck in a “wait-and-see” mode and next week’s economic data could create some critical volatility.

U.S. economic data continues to play an essential role in the sentiment in the gold market. The Federal Reserve has said that it will maintain interest rates higher for longer as healthy economic activity continues to support the tight labor market.

Federal Reserve Chairman Powell reiterated that stance Friday in his prepared remarks during the central bank's annual retreat at Jackson Hole. Although Powell provided little new information, he reiterated the central bank’s stance to bring inflation down to its 2% target even as it remains data-dependent.

“We are navigating by the stars under cloudy skies. In such circumstances, risk-management considerations are critical. At upcoming meetings, we will assess our progress based on the totality of the data and the evolving outlook and risks,” Powell said in his remarks.

Phillip Streible, chief market strategist at Blue Line Futures, said weak data with a focus on Friday’s nonfarm payrolls report could breathe some new life into the precious metal, providing an early signal that the central bank’s tightening cycle has ended; however, he added that the market has some significant hurdles to clear.

“Even if the market does turn around, investors might still hesitate to jump back in. Investors are going to take a more conservative stance on gold and silver in the near term. Prices need to get over $1,971 just to turn neutral, but prices are not even able to break above resistance at $1,951.”

While some analysts have described Powell’s statement as “dull,” they point out that the status quo remains a complex environment for gold.

Craig Erlam, senior market analyst at OANDA, said that gold’s upside momentum could be limited in the near-term.

“Comments from Powell have not put traders' minds at ease and the traders are increasingly being forced to come to terms with rates remaining higher for even longer, strengthening the dollar and weighing on gold again today. It remains above $1,900 currently, but only just. The Fed is clearly far from convinced that the job is done,” he said in a note.

While gold’s upside appears to be limited in the near term, so could its downside. Christopher Vecchio, head of futures and forex at Tastylive.com, said that with bond yields holding near a 15-year high, gold prices should be a lot lower.

He said that he suspects growing economic uncertainty in China and the threat of stagflation in Europe is helping to support safe-haven demand in gold.

“The Chinese government is going to have to throw a lot of good money at bad investments. This uncertainty is helping to raise the floor price for gold and silver,” he said. “I think the worst days for gold and silver are over. The market is not ready to run higher, but I expect we could trend around $1,900 for a while,” he said.

Some analysts point out that silver has already experienced a modest short squeeze as prices look to end the week with a 2.4% gain.

Vecchio added that any signs of economic weakness could convince the U.S. central bank that it doesn’t have to raise interest rates any further.

While the main risk event will be Friday with the release of the U.S. August employment report, several high-profile reports will be on the docket next week.

Next week's data:

Tuesday: U.S. Consumer Confidence, JOLTS job openings

Wednesday: ADP private payrolls, Preliminary Q1 GDP, pending home sales

Thursday: Core PCE, personal income and spending, weekly jobless claims

Friday: Nonfarm payrolls report, ISM manufacturing PMI survey

By

Neils Christensen

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Powell leans hawkish, as expected; markets show no significant reactions

The highly anticipated speech by Federal Reserve Chairman Jerome Powel at the annual Jackson Hole, Wyoming Fed symposium has so far had no major impact on the marketplace. Powell struck a hawkish tone on U.S. monetary policy, saying the inflation fight is not finished and the Fed “has a long way to go” to get inflation tamed to where the Fed wants it to be. Powell said the U.S. economy may not be cooling down like the Fed wants to see in order to choke off inflationary pressures. He said the U.S. central bank is prepared to raise interest rates further, if warranted. “We are in a position to proceed carefully,” said Powell. Some Fed watchers are saying Powell leaned hawkish, but maybe not as hawkish as some in the marketplace expected. Thus, the so-far muted reactions by the markets. December gold was last up $0.50 at $1,947.40.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Gold, silver steady-weaker as Powell Jackson Hole speech awaited

Gold and silver prices are steady to slightly lower in quieter midday U.S. trading Thursday, as traders are awaiting the marketplace event of the week, if not the month: the annual Federal Reserve symposium held in Jackson Hole, Wyoming. The meeting gets under way Thursday evening. This meeting usually produces some market-sensitive news from world central bankers’ comments, including Fed Chair Jerome Powell. Powell is scheduled to speak at the confab on Friday morning at 10:05 a.m. EDT. December gold was last down $0.70 at $1,947.40 and September silver was down $0.152 at $24.245.

U.S. stock indexes are lower at midday, despite Nvidia’s knockout earnings and guidance reports Wednesday afternoon. Said Nigel Green, the CEO of deVere Group: “AI (artificial intelligence) is not just the future, it’s the present, and all investors need some exposure to it – but there’s much more than just this one California-based mega tech company.” The chipmaker beat estimates and said sales will jump another 170% this quarter due to soaring demand for AI chips. Shares in Nvidia jumped 6% on the earnings and guidance, which came after the closing bell Wednesday. “Nvidia is the darling of the AI boom – of this there is no doubt – and with robust guidance we expect this to continue for most of the rest of the year,” said Green. “Investors who are serious about building their long-term wealth need exposure to this pivotal driver of innovation, competitiveness, and profitability across almost all industries. We’re still at the beginning of the AI age and investors should not miss out on having an early advantage. Almost everyone should have investment exposure to AI as part of the mix.”

The marketplace is taking note of the BRICS (Brazil, Russia, India, China and South Africa) meeting this week. China President Xi Jinping was a no-show for a scheduled speech at the confab. Broker SP Angel says in an email dispatch: “We wonder what economic disaster Xi was having to address while missing his speech.”

The key outside markets today see the U.S. dollar index solidly higher, while Nymex crude oil futures prices are slightly up and trading around $79.25 a barrel. The benchmark U.S. Treasury 10-year note is presently fetching 4.227%.

Technically, December gold futures bears still have the overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,980.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,963.50 and then at $1,975.00. First support is seen at today’s low of $1,939.20 and then at Wednesday’s low of $1,926.20. Wyckoff's Market Rating: 3.5.

September silver futures bulls have the overall near-term technical advantage. Prices are starting to trend up. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $25.475. The next downside price objective for the bears is closing prices below solid support at the August low of $22.265. First resistance is seen at this week’s high of $24.43 and then at $24.75. Next support is seen at $24.00 and then at Wednesday’s low of $23.475. Wyckoff's Market Rating: 6.0.

September N.Y. copper closed down 360 points at 377.25 cents today. Prices closed nearer the session low. The copper bears have the overall near-term technical advantage. However, a downtrend on the daily bar chart has been negated. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 362.70 cents. First resistance is seen at this week’s high of 381.55 cents and then at 385.00 cents. First support is seen at Wednesday’s low of 375.70 cents and then at 371.60 cents. Wyckoff's Market Rating: 3.5.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Solid gains for gold, silver as Jackson Hole looms

Gold and silver prices are solidly up in midday U.S. trading Wednesday, boosted by a weaker U.S. dollar index and a dip in U.S. Treasury yields at mid-week. More short covering by the futures traders and perceived bargain hunting are featured in the two precious metals. The technical posture for silver has significantly improved this week, which is inviting chart-based speculators to the long side of that market. December gold was last up $20.60 at $1,946.60 and September silver was up $0.91 at $24.36.

Traders and investors are anxiously awaiting the Kansas City Federal Reserve’s annual symposium held in Jackson Hole, Wyoming late this week. Fed Chairman Jerome Powell and European Central Bank President Christine Lagarde are set to give speeches. The speeches are expected to provide insights into the future monetary policy direction of their respective central banks. The ECB is expected to pause its recent tightening cycle at its September meeting, while U.S interest rates are expected by most to remain elevated for an extended period due to still-significant upward inflationary pressures. The marketplace will be listening closely for a potential shift in the Fed’s inflation goal. An upward revision to the Fed’s present target of around 2% annual inflation could have major implications for the U.S. bond market, particularly longer-dated U.S. Treasuries, likely increasing Treasury yields which are already at the highest levels since 2007.

The Wall Street Journal today reported general U.S. annual inflation has dropped to 3.2%, from a peak of 9.1%. While the Federal Reserve has forced about two-thirds of the problematic inflation genie back into her bottle, there’s still more work to do. That will very likely be the theme of Powell’s speech in Jackson Hole on Friday. Powell cannot err on the side of loosening monetary policy too quickly and potentially reigniting inflation that would likely become even worse than the latest surge. Thus, he’ll lean hawkish on U.S. monetary policy in Friday’s speech. ECB President Legarde is also likely to sound modestly hawkish, but probably less so than Powell.

The key outside markets today see the U.S. dollar index modestly down, while Nymex crude oil futures prices are lower and trading around $79.00 a barrel. The benchmark U.S. Treasury 10-year note is presently fetching around 4.2%.

Technically, December gold futures were up $19.20 at $1,945.30 in midday trading and near the session high. Short covering was seen after prices hit a five-month low Monday. Bears still have the overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart is in jeopardy. Bulls’ next upside price objective is to produce a close above solid resistance at $1,980.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,950.00 and then at $1,965.00. First support is seen at today’s low of $1,926.20 and then at this week’s low of $1,913.60. Wyckoff's Market Rating: 3.5.

September silver futures were up $0.89 at $24.335 at midday and near the session high. Prices hit a three-week high today. The silver bulls have the overall near-term technical advantage and have momentum. A four-week-old downtrend on the daily bar chart has been negated and prices are now starting to trend up. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $25.475. The next downside price objective for the bears is closing prices below solid support at the August low of $22.265. First resistance is seen at $24.50 and then at $24.75. Next support is seen at $24.00 and then at today’s low of $23.475. Wyckoff's Market Rating: 6.0.

September N.Y. copper closed up 485 points at 380.55 cents today. Prices closed nearer the session high. The copper bears have the overall near-term technical advantage. However, a downtrend on the daily bar chart has been negated. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 362.70 cents. First resistance is seen at today’s high of 381.55 cents and then at 385.00 cents. First support is seen at today’s low of 375.70 cents and then at 371.60 cents. Wyckoff's Market Rating: 3.5.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Gold slightly up as marketplace looks forward to Jackson Hole

Gold prices are slightly up and silver prices are solidly up in midday U.S. trading Monday, with gold poking to another five-month low in overnight trading. Short covering, corrective rebounds are featured in the two precious metals. However, rising U.S. Treasury yields to start the trading week and still-bearish charts are limiting the upside for gold and silver. Trading may be more subdued this week, ahead of the late-week annual Federal Reserve symposium held in Jackson Hole, Wyoming. This meeting usually produces some market-sensitive news from world central bankers’ comments, including Fed Chair Jerome Powell. Powell is scheduled to speak at the confab on Friday. December gold was last up $1.80 at $1,918.40 and September silver was up $0.442 at $23.175.

In overnight news, the People's Bank of China cut its one-year loan prime rate (LPR) by 10 basis points to a record low of 3.45%, while unexpectedly holding steady the five-year rate at 4.2%. Most economists had predicted a 15 basis-point cut. Monday’s move came after a surprising reduction in both short-term loan rates and the medium-term rate by the central bank last week, as it seeks to strike a balance between helping the economy and stemming further depreciation of the Chinese yuan. The Hang Seng stock index declined, headed for its lowest close since November. Reads a Wall Street Journal headline today: “China’s 40-year boom is over, raising fears of extended slump.”

The key outside markets today see the U.S. dollar index slightly higher, while Nymex crude oil futures prices are firmer and trading around $81.75 a barrel. The benchmark U.S. Treasury 10-year note is presently fetching 4.338%.

There is no major U.S. economic data due for release Monday.

Technically, December gold futures were up $1.70 at $1,918.20 in midday trading and nearer the session low. Prices hit another five-month low today. Bears have the firm overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,980.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today’s high of $1,927.90 and then at $1,938.20. First support is seen at today’s low of $1,913.60 and then at $1,900.00. Wyckoff's Market Rating: 3.0.

September silver futures were up $0.437 at $23.17 at midday and nearer the session high. The silver bears have the overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart is now in jeopardy. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at today’s high of $23.36 and then at $23.75. Next support is seen at today’s low of $22.71 and then at $22.50. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed up 105 points at 371.65 cents today. Prices closed nearer the session high. The copper bears have the firm overall near-term technical advantage. Prices are in a downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 390.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 356.50 cents. First resistance is seen at last week’s high of 374.90 cents and then at 378.00 cents. First support is seen at today’s low of 368.45 cents and then at the August low of 362.70 cents. Wyckoff's Market Rating: 2.5.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

Mixed sentiment highlights difficult environment for gold as bond yields remain elevated

Rising bond yields as the Federal Reserve looks likely to maintain its aggressive rate hikes are creating a challenging environment for gold Gold prices, and the mixed sentiment in the marketplace does not point to significantly higher prices anytime soon.

The latest Kitco News Weekly Gold Survey shows that Wall Street analysts are significantly bearish on gold in the near term, while sentiment is roughly balanced among retail investors.

According to analysts, rising U.S. bond yields, which hit a new 15-year high Thursday, remain a significant headwind for gold. They note that gold’s rising opportunity costs are also stopping it from attracting safe-haven flows as a slowing Chinese economy spooks investors.

“Yields are at a level that is supporting the Federal Reserve’s monetary policies and that is a tough environment for gold,” said Ed Moya, senior market analyst at OANDA. “There will be a time when gold is attractive again, but now is not that time.”

Despite the uphill battle, Moya said that he is neutral on gold for next week as bond yields could be close to peaking; he added that selling momentum in gold appears to be slowing.

“For gold selling pressure to remain, global bond yields might need to surge higher,” he said.

However, most analysts said lower gold prices are more likely in the near term. There are growing expectations that Federal Reserve Jerome Powell, speaking at the annual Jackson Hole central bank retreat next week, will maintain his hawkish bias and signal rates will remain higher for longer.

“The markets are now pricing in an extended period of elevated US interest rates, a dynamic that supports the dollar and is bad news for the precious metal. Against this background, gold prices are likely to remain under pressure, with the next significant support level at $1875,” said Ricardo Evangelista, senior analyst at ActivTrades.

This week, 16 Wall Street analysts participated in the Kitco News Gold Survey. Among the participants, ten analysts, or 63%, were bearish on gold in the near term. At the same time, two analysts, or 13%, were bullish for next week, and four analysts, or 25%, saw prices trading sideways.

Meanwhile, 941 votes were cast in online polls. Of these, 415 respondents, or 44%, looked for gold to rise next week. Another 386, or 41%, said it would be lower, while 140 voters, or 15%, were neutral in the near term.

Kitco Gold Survey

Wall Street

Bullish

Bearish

Neutral

VS

Main Street

Bullish

Bearish

Neutral

Adrian Day, president of Adrian Day Asset Management, said that while he expects gold prices to push higher in the next few months, investors shouldn’t ignore the near-term price action.

“It’s very rare to see a washout like this without seeing some follow through,” he said. “I think we should expect to see lower gold prices next week, but that won’t do anything to change the long-term outlook.”

James Stanley, market Strategist at Stone X, said that while he expects Powell to strike a neutral tone at Jackson Hole next week, it will be difficult for gold to shake its bearish technical outlook.

“[Powell will] have a little something for both USD bulls and bears without too much inference ahead of the September meeting, and I think removing some pressure from the situation could allow for gold to retrace some of this week’s losses,” he said. “I’m still retaining a bearish bias because spot Gold slipped below a big level this week at 1900 and that three-year range remains very much in play.”

However, there are still a couple of bulls in the marketplace. Michele Schneider, director of trading education and research at MarketGauge, said that despite the selling pressure, gold still holds critical support levels. The gold market has managed to hold support above its March lows.

“I’m not worried about gold,” she said. “I would be looking to buy at lower levels.”

  Gold price outlook remains bullish but record highs pushed out to the end of Q1 2024 – ANZ

By

Neils Christensen

For Kitco News

www.kitco.com

Time to Buy Gold and Silver

Tim Moseley