Gold Must Do This
Gold (August) / Silver (July)
Gold, yesterday’s close: Settled at 2327.0, up 2.0
Silver, yesterday’s close: Settled at 29.874, up 0.434
Gold and Silver futures have faced tremendous headwinds from all angles. Friday’s obliteration began after data showed People’s Bank of China did not add to its Gold reserves in May, breaking a streak of 18 straight months. Although we know central banks around the world are still adding to Gold and private entities in China are likely to be doing the same, the news should not have been a total shock as the PBOC softened its buying in April, and as prices have skyrocketed, up as much as 23% in May from the December low.
A strong U.S Nonfarm Payrolls reported, highlighted by large job growth and steadfast wage growth hit a market while it was down. However, the Unemployment Rate rose to 4.0%, a two year high. While pockets of data show some erosions, job growth has been abundant, especially in the services sector.
Gold and Silver price action improved yesterday before China returned from a three-day holiday to pick up from Friday’s selling that was incurred during U.S. hours. While Silver set a fresh low last night, losing 3% from session highs, Gold remained more constructive, and we are now seeing improvement at the onset of U.S. hours. In fact, Gold is testing the highest level since Friday morning. While there is strong overhead supply in the aftermath of Friday’s damage, we view a move that can hold above 2327-2330.6 as constructive and sets the stage for a potential move out above major three-star resistance at 2343.3-2346.2, which pins Gold positive on the month and neutralizes Friday’s bludgeoning.
Bias: Neutral/Bullish
Resistance: 2334.8-2337.1***, 2343.3-2346.2***
Pivot: 2327-2330.6
Support: 2322.5-2324.7**, 2314.5-2318.5***, 2302.4-2308.7***, 2227.5-2256.4***
Silver (July)
Resistance: 29.62-29.72**, 29.87-29.94**, 30.07-30.09***, 30.23-30.33***
Pivot: 29.51
Support: 29.33-29.37**, 29.13-29.23**, 28.70-28.80****
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Gold, yesterday’s close: Settled at 2327.0, up 2.0
Silver, yesterday’s close: Settled at 29.874, up 0.434
Gold and Silver futures have faced tremendous headwinds from all angles. Friday’s obliteration began after data showed People’s Bank of China did not add to its Gold reserves in May, breaking a streak of 18 straight months. Although we know central banks around the world are still adding to Gold and private entities in China are likely to be doing the same, the news should not have been a total shock as the PBOC softened its buying in April, and as prices have skyrocketed, up as much as 23% in May from the December low.
A strong U.S Nonfarm Payrolls reported, highlighted by large job growth and steadfast wage growth hit a market while it was down. However, the Unemployment Rate rose to 4.0%, a two year high. While pockets of data show some erosions, job growth has been abundant, especially in the services sector.
Gold and Silver price action improved yesterday before China returned from a three-day holiday to pick up from Friday’s selling that was incurred during U.S. hours. While Silver set a fresh low last night, losing 3% from session highs, Gold remained more constructive, and we are now seeing improvement at the onset of U.S. hours. In fact, Gold is testing the highest level since Friday morning. While there is strong overhead supply in the aftermath of Friday’s damage, we view a move that can hold above 2327-2330.6 as constructive and sets the stage for a potential move out above major three-star resistance at 2343.3-2346.2, which pins Gold positive on the month and neutralizes Friday’s bludgeoning.
Bias: Neutral/Bullish
Resistance: 2334.8-2337.1***, 2343.3-2346.2***
Pivot: 2327-2330.6
Support: 2322.5-2324.7**, 2314.5-2318.5***, 2302.4-2308.7***, 2227.5-2256.4***
Silver (July)
Resistance: 29.62-29.72**, 29.87-29.94**, 30.07-30.09***, 30.23-30.33***
Pivot: 29.51
Support: 29.33-29.37**, 29.13-29.23**, 28.70-28.80****
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.