In the early morning trade, August gold trading slightly in the red and looking a little toppy after it failed to break above yesterday’s high of $1,779 a troy ounce. Yesterday, the bull camp was in control trading nearly at 8 years highs and a rise in open interest, but that could be slightly dampened with the announcement that a 2nd round of Coronavirus stimulus checks will be delayed. Furthermore, gold ETF’s have reported that this was the 6th largest week ever in buying them, so that could add support and minimal downside risk.
Gold is still in a very strong uptrend with support down to $1,750 an ounce, but if it gets below that level look for a larger pull back in this market. If it breaks yesterday’s high which I mentioned above, then look for a rally above $1,800 an ounce.