August gold has seen a sideways trend but giving investors and traders alike some excitement along the way. All of the noise out in the market regarding the precious metal has everyone paying attention, even if it’s a glance. Silver seems to be stealing the show as it’s trading more in a position of strength than its cousin gold. Having said that, this is about golds lackluster performance over the past several months, not silver’s recent strength. If we look at how gold is trading right now, it’s clear that a break above the recent highs is necessary for a bullish case to continue to be the picture investors are painting. I agree with many points I hear from tensions with China (even today with the Trump/Xi pressers) to the endless fed money printing. Great depression levels of unemployment and GDP that’s likely to take a while to recover.
To be clear, it’s a sideways trending market not a bull market. When August gold breaks above $1790, this is the sign to be bullish in my opinion. This is more about the technical to me than it is fundamentals. I could make a case for gold to be up or down, but technical will direct me to the latter unless something changes there. Gold has much strength this morning with equities sharply lower, and gold up $20 hovering around $1750. It may seem like a great time to buy but remember that this is not the first-time gold has seen this trade higher only to reverse and dip below $1700 before again recovering.