Gold Silver Reports (GSR) – Technically, no change in the pattern. Support key around $1,220; resistance at $1,237. August sometimes can surprise. Markets are very thin and many big producers in Europe are closed or at limited capacity. Will not take much for volatility to increase.
Gold is hanging on, with minor volatility overnight. The $1,218-1,220 level was again tested overnight but with little enthusiasm.
Traders are probing for weak longs. The market is now awaiting the Federal Open Market Committee meeting which begins tomorrow. It is not expected that the Fed will raise rates at this meeting, but if they do, gold will be sold aggressively.
The most likely outcome will be no change but the market will now focus on Fed language to see if President Trump’s remarks, that the Fed was undoing all of his economic progress with higher rates, has played a chord with any of the Fed members. With a posted GDP growth rate north of 4% in the second quarter, it may keep the Fed’s trajectory of two more hikes this year in play.
