gold futures

August Gold Holds Firm Above 1400.0

Posted Monday, June 24, 2019 by
Shain Vernier • 1 min read

August gold futures are once again on the bull, driving north of 1410.0. Safe-haven demand continues to be strong in the wake of the USD’s meltdown and forthcoming relaxed FED policy. Although stocks remain within a stone’s throw of all-time highs, investors are stockpiling bullion as a hedge against currency devaluation.

Earlier today, the Dallas FED Manufacturing Business Index for June was released to the public. Although a secondary metric, the number came in at -12.1, well beneath expectations (4.8) and the previous release (-5.3). This figure is in line with the rest of the regional FED metrics, suggesting that U.S. economic conditions are degrading as the year wears on.

August Gold Futures Are Catching Bids Above 1400.0

The past several years haven’t been kind to the gold bugs. However, the long-term stagnation appears over and bullion is on the march north.

August Gold Futures (GC), Daily Chart
August Gold Futures (GC), Daily Chart

Overview: From a purely technical standpoint, there really isn’t much to look at on the daily timeframe. Aside from psyche levels such as 1425.0 and 1450.0, no topside resistance is imminent. At least for the August futures contract, prices appear to be on a collision course with $1500.0.

The recent bullish pressure on bullion is most likely a product of institutional traders limiting their financial risk exposure. However, the current situation in the markets is a bit convoluted. Equities are up, inflation is low, and the geopolitical situation is fairly stable. At this point, it looks like the June rush to GOLD is a defensive maneuver ahead of steep FED rate cuts, a final Brexit resolution, and the 2020 U.S. Presidential election.

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