Gold tested the at 1,440 again Wednesday as investors are digesting central banks related banks in Europe and the United States. Investors are waiting for Friday US NFPs report.
The ECB is looking for a replacement of its President Mario Draghi, with IMF chief Christine Lagarde as a firm candidate backed by EU leaders. Investors are watching the nomination as a move in favor of the monetary policy easing bloc.
President Trump announced the names of 2 nominees to the Fed’s Board. Christopher Waller and Judy Shelton are the names that President Trump proposed, they are easing policies believers and apparently aligned to President Trump’s view for rate cuts.
Gold is Unstoppable
Gold jumped to test the 1,440 area Wednesday, and it got a rejection that sent it back to trade below the 1,420 and to post losses on the day.
Currently, XAU/USD is trading 0.13% down on the day at 1,416. The move was preceded by an active recovery daily candle performed Tuesday.
Gold was up influenced by news about the nomination of Christine Lagarde as ECB’s President Draghi replacement and President Trump’s rate-cut believer nominees to the board of the Fed.
Although technical studies suggest more declines in the middle term, chart pattern still shows a Bullish consolidation above the 1,380 area with the 1,440 level acting as a container.
An analyst that I read says that gold is unstoppable with a primary target of 1442. “However, a strong bullish impulse could lead to 1450 and 1456. Only a break below the lower trend line 1390 could make gold neutral again. So far, buying the dip is obvious on intra-day time frames.”
If gold can break above the 1,440 area, it will find resistances at 1,445 and 1,490 ahead of the psych mark at 1,500.
To the Southside, 1,400 is the short term support but the 1,380 area to break if gold wants to confirm a bearish continuation. Below there, 1,360 and 1,345 are the marks to watch.
The Metals report for 3 July 2019
Silver is turning down Wednesday after failing to sustain gains above the 15.40 area. Currently, XAG/USD is trading 0.40% negative on the day at 15.25 as the metal fell back to the range between 15.10 and 15.30 it has been trading since June 26.
Copper is extending losses for the 4th day running, but this time the story looks different as XCU/USD found support at 2.6340 and bounced at that level to trade almost flat on the day at 2.6610. Previously in the week, Copper lost 4.0% plus from Monday highs at 2.7500 to Wednesday’s lows at 2.6340.
Palladium is quietly extending highs Wednesday, but the unit is negative on the day. XPD/USD advanced to trade at highs since 26 March at 1,568 earlier in the day, but the pair was not strong enough to sustain gains, and it is now trading back at 1,559, posting 0.22% losses on the session.
Platinum is trading positive Wednesday for the 1st time in 3 days as the unit is extending recoveries from Tuesday’s bottom at 824.45. Wednesday, XPT/USD is trading at 834.65, 0.60% positive on the session.
Have a terrific 4th of July Holiday!