The price of gold rose to a one-year high on Thursday after the dollar tumbled on the back of weak U.S. jobs data and an unchanged growth and inflation outlook from the European Central Bank. The number of Americans filing for unemployment benefits jumped to its highest level in more than two years last week amid a surge in applications in hurricane-ravaged Texas. Also pressuring the dollar on Thursday was a resurgent euro, which jumped to a nine-day high after the European Central Bank broadly stuck to its outlook for growth and inflation. Continuing tensions on the Korean peninsula over N.Korea’s nuclear tests continue to provide a backbone of support for safe-haven gold.While both gold and silver are showing an overbought condition on the daily charts, there seems to be so much uncertainty in the markets right now for a major abandonment by the longs right now. In fact any liquidation would most likely occur closer to the Fed’s next meeting on the 19th and 20th of September. Currently the disarray in D.C., with the U.S. congress facing a daunting schedule, trying to tackle tax reform, the budget, funding for hurricane relief, and now DACA add to the risk off tone. For the session December gold gained $11.30 to close at 1350.3. December silver gained .20 cents to close at 18.11. Look for gold and silver to test weekly second resistances in the overnight market at 1358.1 in December gold and 18.30 in December silver. Upside targets include 1376.0 for gold and 18.76 for silver should the buying continue into the weekend.
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