Gold Moving Back Above Key Support Level
Stuppler & Company is proud to provide our clients this Weekly Market Report (WMR). The report gives you my overview of the prior week’s precious metal and rare coin market activity and news. In each WMR, I share the current status of Gold and Silver along with their support and resistance levels. |
This Week's Headlines: |
Gold traded between $1,950 and $1,980 prior to Wednesday’s Federal Reserve announcement on Fed Funds rates. After the Fed reported an ¼% increase (as expected), the Gold price stayed in the same range. However, on Thursday, the June U.S. Durable Goods numbers were released and they were much higher than expected (4.7% increase). The Dollar rallied on this news and Gold dropped to a low of $1,940 on excellent trading volume.
On Friday, as the week was ending, the Commerce Department reported that the June U.S. Personal Consumption Index was a surprisingly low 0.2%. The is a favorite inflation measure of the Federal Reserve who carefully look at this index when deciding on any increase of the Fed Fund rate. The U.S. Dollar Index fell on this report but precious metals rallied. Gold reached a high of $1,960, well above the $1,950 support level on this news.
Today: Gold is moving higher this morning, reaching $1,970 per ounce. It appears that Gold is headed for its best month since March, as speculation grows that the Federal Reserve is nearing the end of its interest rate-increase cycle and with the U.S. Dollar weakened.
Silver also reacted to the Fed Funds increase, the U.S. Durable Goods number and the Personal Consumption numbers. Last week, the Silver price had a difficult time closing above the key $25 support/resistance level. Silver reached a high of $25.14 after the Fed Funds increase but couldn’t stay there. Silver closed the week at $24.42, down $0.20 for the week.
A combination of increased world mint production and a normal summer slump in demand have caused premiums on many of the popular Silver investment coins to drop. The premium on the very popular U.S. Silver Eagle is now at spot Silver plus only $5.25 per ounce.
Today: Silver followed Gold higher this morning, as it approaches the key $25 per ounce resistance level. Physical and futures demand is picking up in Asia and European markets.
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