The gold maintains the bullish momentum but the pedigree is minimised compared to silver. S&P lowered the European markets ratings and Carney hinted rate cut benefits the bullion bullish bids.
The precious metal nearly rose 25% in the first half of 2016, recorded the highest since 4Q of 2014. But silver rose more than 35% in the same period.
Saxo Bank (Saxo Bank) commodity strategy director Ole Hansen said: “The gold bull market is under control, gold appears in all the news, investors have also responded particularly notable market that the Fed will be in 2018 lower interest rate situation. “Hansen believes that if the price of gold fell below $ 1305 / oz level, it will promote further ETF buying, reported by Gold headline.
The price is trading at 1328.00 post-Caixin Manufacturing PMI. The immediate resistance seems between 1330.00 and 1332.00 above these 1340.00 is the gateway to be breached by bulls. In this case, 1400.00, 1450.00, 1500.00 and 1580.00 is highly likely.
Alternatively, support finds at 1319.00, 1312.00 and 1305.00. The hourly 200sma finds at 1299.00.
The price formed a solid foundation between 1299.00 and 1305.00 levels.