Gold futures held steady today as equities weakened and the Dollar gave back all of the previous days gains. December gold gained $3.70 to close the session at 1294.7, while September silver gained 6.5 cents to close at 1704.5. There seems to be a small pause in the market ahead of the annual central bankers meeting held in Jackson Hole, Wyoming, that begins Thursday and ends Saturday. Featured speakers from around the world include Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi. Traders and investors will closely examine the Jackson Hole speeches for any clues on future monetary policy moves by the world’s major central banks. Incendiary commentary by the President in the last 24 hours over a potential government shutdown and an unwinding of the NAFTA trade agreement have kept this market bid along with new sanctions against North Korea. However geopolitical issues will most likely need to reemerge if Janet Yellen’s commentary is seen as hawkish into next week. The market is perceiving that the tone from Yellen will be dovish as another debt ceiling deadline looms. Today’s trade was typical for the dog days of August as the market awaits news from the Fed governors.
Technical’s read like this for December gold and September silver for the remainder of the week. For December gold ,support comes in first at weekly pivot at 1290.4. A close under here and the market could test 1273.9. Resistance sits up at 1308.1. A close over this level and the market could test 1324.6. For September silver, support sits down at 1668.5 and with a close below 1628.5. Resistance is up at 1744.5 and with a close above 1780.5 is the next resistance.
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