Gold Breaks 1450 on Increased Rate Cut ExpectationsPosted 07/19/2019 8:47AM CT |
August gold continued through 1450 to post a new recent high of 1454.4 in the overnight session before trading back below Thursday’s close of 1447.4. Bullish headlines this week continue to add strength to the market, but weak trade to end the week could lessen bullish momentum. The market is expecting that the U.S. is ready to weaken the dollar with preemptive rate cuts up to 50 basis points on July 31st. The U.S. dollar has recovered some today from its 2-day slide. The silver market has been posting a series of higher highs all week and currently looks to have more strength than the gold market. Some of gold’s pullback to start the day could be due to funds building a larger net long position in silver vs gold. The 1450 level in August gold is still the key resistance point in continuing the trend higher with the next level of resistance at 1470. Support comes in at 1433.5 and a close below that would point to trade breaking to the 1400-1408 level. With more Fed members speaking on the need for action the trend is still to the upside but we may see some choppy trade before making another run higher.
Gold Oct ’19 Daily Chart