In the early morning trade, October gold is slightly up trading at $1,508 an ounce and trading near six-year highs. Surprisingly, when China announced this morning that starting on September 1st they would start taxing U.S. crude oil imports by 5%, gold didn’t catch an immediate bid off that news. However, Fed chairman Jerome Powell is making remarks shortly from Jackson Hole as the markets wait patiently to see how aggressively he will guide on interest rate cuts, which are expected to happen in September at 25 basis points.
If we look at the daily October Gold chart, you’ll clearly see the strong bull market that the shiny one has enjoyed since late spring/early summer. There is strong support between $1,485-$1,450, so watch for the bulls to buy on pull backs in this area. The August high of $1,539.5 will be a key resistance area and if the market can get above that level and with all the uncertainty going on currently, which is mostly being caused by the media, then we can’t rule out a rally up to $1,600-$1,700 an ounce by the end of the year, which many professionals are predicting, but they are also quit often wrong. We’ll just have to wait and see, but as pro football HOF Terrell Owens says, “Get Your Popcorn Ready”.