Gold Price Up As US Dollar Resumes Descent
New York (Sept 7) Gold prices are higher in early U.S. action Thursday, supported by a slumping U.S. dollar against the major currencies. Bullish charts continue to invite technically based buying in both the gold and silver markets. December Comex gold was last up $4.90 an ounce at $1,344.10. December Comex silver prices were last up $0.06 at $17.97 an ounce.
A major economic data point of the week is Thursday’s European Central Bank monetary policy meeting, including a press conference from ECB President Mario Draghi after the meeting. The just-concluded ECB meeting did not produce any changes in interest rates or monetary policy. No changes were expected by the marketplace. However, traders and investors are wondering when the ECB will announce a scaling back of its years-long bond-buying program, called quantitative easing. Draghi could provide clues on the matter at his press conference. The Euro currency could become volatile in FOREX trading, in the wake of Draghi’s press conference.
The key outside markets on Thursday morning see the U.S. dollar index solidly lower and close to the recent 15-month low. The slumping greenback this year has been a bullish underlying element for the precious metals markets.
Meantime, Nymex crude oil futures are near steady. Oil bulls have gained some technical momentum recently.
U.S. economic data due for release Thursday includes the weekly jobless claims report, revised productivity and costs, the IBD/TIPP economic optimism index, and the weekly DOE liquid energy stocks report.
Technically, December gold futures bulls have the solid overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,350.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,307.00. First resistance is seen at 1,350.00 and then at $1,360.00. First support is seen at the overnight low of $1,337.20 and then at this week’s low of $1,331.10. Wyckoff’s Market Rating: 8.0
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