In the early morning trade, August gold is currently trading at $1,411 and trading in the green up $4 an ounce. After the two-day dovish Fed testimony ended yesterday, gold has continued its pursuit of $1,500 an ounce, which many gold traders and investors alike believe will happen when they cut rates at the end of this month. The aggressiveness of the upcoming Fed rate cute will decide how far the shiny one can rally. Moreover, depending on how aggressive they cut rates will also affect how far the dollar will fall, which will only help gold bulls enjoy higher prices. Lastly, with President Trump tweeting out yesterday that China has not lived up to their part of the deal that was agreed upon the two world super powers at the G-20 summit in Japan last month, that it would be buying large amounts of grains from our great farmers. This failure by China to live up to their part of that agreement and for our president to call them out on it will only cause more anxiety buying and eventually help gold reach that $1,500 a troy ounce target. `
If we take a look at the daily August gold chart, you’ll see that it has held to $1,400 an ounce handle this week and if it holds, that will be bullish for higher gold prices. The support on gold is the July 1st low of $1,384 and if that breaks, look for gold to fall back roughly to its 50-day moving average of $1,341. I have highlighted these support levels below on my daily August gold chart.
Gold Aug ’19 Daily Chart