KEY POINTS:

  • The feeling of global risk remains, interest rates seem to fall.
  • Minutes of the FOMC on Wednesday; Fed president on Friday.

GOLD STAYS STABLE AND READY TO MOVE UP

Gold is still supported and is waiting to develop its next bullish momentum to advance to its recent multi-year high. The feeling of risk, one of the main drivers of gold, remains with the trade talks between the United States and China that have not yet been confirmed, while in Hong Kong the mass protests continue, and these can be a hot topic of discussion between the United States and China.

On Wednesday, the last minutes of the FOMC will be presented, while on Friday, Federal Reserve President Jerome Powell will speak at the Jackson Hole Symposium and could give more information on the thought about the next round of rate cuts United States interest. Any indication that the Federal Reserve wants to get ahead of the curve and cut rates aggressively will push gold up.

The daily gold chart suggests further consolidation in the short term as the market gets rid of its recent overbought bias. There are some recent lows between $ 1,487 and $ 1,503 and that will support gold in the case of a mass sale, while upwards, $ 1,520, before $ 1,528 and $ 1,535 will function as resistors. If this last level is broken, then $ 1,540 will be the next target.

DAILY CHART XAU / USD:

Diairo XAU / USD Chart - 08/19/2019

IG client positioning data show that 62.3% of gold traders hold long positions, a bearish opposite indicator.

SILVER PRICE KEEP YOUR FIGHT

Silver is stuck in a short-term downtrend after reaching $ 17.51 ​​last week when the raw material space recovered. Since then, silver has made a series of lower highs and lows and if the price falls below $ 17.00, the double low of August 8 and 12 at $ 16.80 will be tested.

Below here, the 61.8% Fibonacci retracement at $ 16, 57 should provide strong support. Silver has moved out of the overbought territory and will probably remain in tune with the price of gold .

The gold / silver ratio remains stable around 88.60.

XAG / USD DAILY CHART:

Gold prepared to rely on the Fed;  silver continues to fight

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