{"id":2779,"date":"2024-09-05T04:40:33","date_gmt":"2024-09-05T04:40:33","guid":{"rendered":"https:\/\/prendergast.net\/?p=2779"},"modified":"2024-09-05T04:40:33","modified_gmt":"2024-09-05T04:40:33","slug":"gold-price-news-gold-runs-out-of-steam","status":"publish","type":"post","link":"https:\/\/prendergast.net\/?p=2779","title":{"rendered":"Gold Price News: Gold Runs Out of Steam"},"content":{"rendered":"

Gold Price News: Gold Runs Out of Steam<\/span><\/span><\/strong><\/span><\/span><\/strong><\/span><\/span><\/h1>\n

While gold has largely been in consolidation mode since 19 August, price action this week is starting to suggest a retracement with the metal now trading at c. $2486\/toz. This has come against a fundamental backdrop that has little changed over recent days with a slight easing of US rates and some firming of the US dollar, creating very little net impact for non-yielding dollar-denominated assets such as gold and silver.<\/span><\/span><\/span><\/span><\/p>\n

gold price kau on kinesis exchange<\/span><\/span><\/span><\/span><\/p>\n

Kinesis gold (KAU) price – $\/g – on Kinesis Exchange<\/span><\/span><\/span><\/span><\/p>\n

Consequently, it seems more likely that gold’s current weakness is a function of both recent performance – up 2.3% in August amid broader market turmoil – and an absence of further clear catalysts prompting profit-taking. Certainly, multiple geopolitical flashpoints remain, but timing remains a known unknown. So, are we seeing ‘stale bulls’ remove support?<\/span><\/span><\/span><\/span><\/p>\n

The question is pertinent. We noted on Monday that the most recent CFTC Commitments of Traders (CoT) report saw speculative gold futures net longs at a 52-month high. It certainly remains to be seen how resilient this elevated level of speculative interest remains during this period of neutral fundamental support and recent depressed price momentum<\/span><\/span><\/span><\/span><\/p>\n

Technically, gold is currently testing both the 20-day Simple Moving Average and the 23.61% Fibonacci retracement of the 25 July- 20 August uptrend at $2490\/toz. Given that the standard MACD line pushed below the signal line on Monday and has descended further since, there is a reasonable probability of a further downside break. Should this occur, then the next likely levels of support are at the 38.3% Fibonacci retracement level of $2464\/toz and descending oblique major support at $2445\/toz.<\/span><\/span><\/span><\/span><\/p>\n

To the upside, we see ascending major oblique resistance at $2510\/toz and major horizontal resistance at $2513\/toz. The initial breakout target of $2543\/toz remains.<\/span><\/span><\/span><\/span><\/p>\n

Significant events for gold investors going forward include the Bank of Canada rate decision (with high probability of a 0.25% cut) on 4 September and August US ISM Servies PMI on 5 September.<\/span><\/span><\/span><\/span><\/p>\n

Time to Buy Gold and Silver<\/a><\/u><\/span><\/span><\/span><\/p>\n

<\/p>\n

Tim Moseley<\/p>\n","protected":false},"excerpt":{"rendered":"

Gold Price News: Gold Runs Out of Steam While gold has largely been in consolidation mode since 19 August, price action this week is starting to suggest a retracement with the metal now trading at c. $2486\/toz. This has come against a fundamental backdrop that has little changed over recent days with a slight easing … Continue reading Gold Price News: Gold Runs Out of Steam<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[291],"_links":{"self":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/2779"}],"collection":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2779"}],"version-history":[{"count":0,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/2779\/revisions"}],"wp:attachment":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}