Weekly Gold Report

Sean LuskGeneral Commentary

The Gold market finished the week strong Friday and rebounded nicely from multi- month lows made this past Monday. August gold futures settled at 1227.5 gaining $17.50 for the week. Silver futures rebounded as well posting a .50 cent gain for the week to close at 15.93 an ounce basis September futures. Gold may have found a near term bottom as recent comments this week from Janet Yellen in front of Congress were seen as dovish by the market. As a consequence the Dollar pushed to new multi month lows which propelled gold and silver higher. Yellen’s comments were a departure from her recent hawkish tone on rates with the street now pricing in only one rate hike in the next six to nine months. The Fed Chair again noted that the Feds inflation target has not been achieved which again was opposite of her comments following the last FOMC meeting. Following Yellen’s two day testimony, the stock market scored new highs in the Dow and S&P, and the Dollar plunged to new multi-month lows. Gold and Silver which normally trade inverse of the Dollar rallied into the weekend. Technically, the market looks poised to push higher as there is a MACD cross over to the upside. If prices move higher look for a close over 1233.6 basis August futures as that is the 200 day moving average. Data to pay attention to next week include some regional manufacturing numbers for July, housing construction data will also be released next week. Gold investors will also want to pay attention to the European Central Bank’s meeting. While the central bank not expected to raise interest rates next week, European Central Bank President Mario Draghi has made recent hawkish comments on monetary policy.

My technical swing numbers come in as follows for next week. Support is down first at 1210.1 and with close below, 1192.7 is next. Resistance is up at 1238.8 and above there at 1250.1. For September silver , support comes in first at 1536 and below there at 1479.0 Resistance is up at 1628.5 and with a close above next resistance is 1664.0.