Gold and silver prices were higher in morning trading on Monday, as key foreign markets are favoring these precious metals to begin the week—a lower USD index and solidly gained crude oil prices. These two metals are also benefiting from a boost this week on growing news that the Fed will not be able to start restricting its monetary policy as many people had thought just some weeks ago.
Oct. gold futures were up by $10.00 at $1,791.80 and Sept. Comex silver were up $0.338 at $23.45 per ounce.
The focus of investors this week is on this year’s Fed symposium which is being held in Wyoming. The confab was pared back and some of it will be virtual because of the delta variant of the covid virus. Earlier this week, investors are reassessing notions that the Fed will be hawkish concerning its monetary policy at their symposium. The quickly spreading delta variant has many people now thinking the Fed will be forced to wait longer to bring in its easy-money programs. Dallas Fed President Rob Kaplan stated Friday he is rethinking his push for an early lowering process for the Fed’s bond buys, due to the virus and its possible impact on the economy.
It seems there is lower risk aversion being seen in the global market to begin the trading week. Although there is still the problem in Afghanistan, with Americans still attempting to get out of the nation. However, it seems the markets are now past the issue. Veteran market observers are well aware of the historically chaotic months of Sept. and Oct. that are coming up for the financial and stock markets.
United States economic data released Monday includes the Chicago Federal Reserve national index, the United States flash and services PMIs, and current home sales.
October gold futures bulls now have an overall close-term tech. advantage along with the momentum advantage. Bulls’ next high-side price target is to give a close over better resistance at $1,800.00. Bears’ next downside target in the close term is driving futures under the solid support at $1,700.00. First resistance is at $1,795.00 and then $1,800.00. First support is at the low of $1,775.90 and $1,769.80.
Author: Blake Ambrose
