|Day's range||1,214.80 - 1,228.30|
More than 140 survivors of sexual abuse by a former team doctor for USA Gymnastics and Michigan State University joined hands on stage to be honored with the Arthur Ashe Award for Courage at the ESPYs. The women who spoke out against the abuse by Larry Nassar stood together Wednesday night in a powerful and solemn closing to the show highlighting the past year's top athletes and moments in sports. Gymnast Aly Raisman, softball player Tiffany Thomas Lopez and gymnast Sarah Klein, who said she was Nassar's first victim 30 years ago, took turns speaking.
Gold prices rebounded from session lows following the softer than expected U.S. housing starts data which knocked down the dollar and paved the way for a rebound in the yellow metal. Gold prices formed a doji day with a long tail, which is generally a sign of indecision, but the rebound shows the rejection of lower prices. Target support is seen near the July 2017 lows at 1,204. Resistance is seen near the 10-day moving average at 1,245. Momentum remains negative as the MACD line recently generated a crossover sell signal and the MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.
The reaction by bearish traders in the gold market to Powell’s testimony indicates that they are happy with the economy and the Fed’s “gradual” pace of interest rate hikes. The charts indicate that resistance is the old tops at $1228.20 and $1230.70. On the downside, the next target is the February 2017 bottom at $1217.20. This price is the trigger point for a steep sell-off with $1158.40 the next major downside target.
Based on Tuesday’s close at $67.16, the direction of the September WTI crude oil market on Wednesday is likely to be determined by trader reaction to the main Fibonacci level at $66.82.
Natural gas markets initially tried to rally during the day on Tuesday, reaching towards the $2.78 level, an area that has been supported in the past, so it’s not a huge surprise that its resistance now. I believe that natural gas markets are ready to extend the lower levels.
The US dollar rallied during most of the day on Tuesday, reaching towards the ¥112.50 level, an area that of course has attracted attention in the past. I suspect that this point we are churning, perhaps trying to build up the necessary momentum to continue the move higher.
The British pound fell during the trading session on Tuesday, due to suggestions that perhaps the UK was going to leave the EU customs union without a deal. At this point, it looks as if the market is trying to find whether there is enough support just below the 1.32 level to continue the recent bullishness.
The Euro initially tried to rally during the day on Tuesday, but turned around to fall towards the 1.17 level, an area that has been supported recently. The question now is whether or not this level will hold?
The Australian dollar fell rather hard during the day on Tuesday, crashing into the vital 0.74 level, an area that has been supportive a couple of times now. I think at this point, it looks like we are probably going to be more range bound than anything else.
Natural gas prices formed an outside day. The weather continues to point to cooler than normal temperatures throughout most of the mid-west and the pattern is moving eastward. Target support on natural gas prices are seen near an upward sloping trend line that comes in near 2.67.
Gold prices tumbled on Tuesday, as commentary from Fed Chair Powell, allowed the greenback to gain traction. Gold prices drop sharply on Tuesday slicing through former support which were the July and December lows at 1,236, and headed toward target support near the July 2017 lows at 1,204. Resistance on the yellow metal is seen near former support at 1,236 and then the 10-day moving average at 1,247. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.
Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the downtrending Gann angle at 25018. Watch the price action and read the order flow at 25018 all session. Investor reaction to this angle will tell us if the buying or the selling is getting stronger.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 1.1720. Basically, look for an upside bias to develop on a sustained move over 1.1720 and for a downside bias to develop on a sustained move under 1.1680. Trading between these levels will produce a choppy, two-sided trade.
In order to trigger a sustainable rally in gold, Powell is going to have to acknowledge cracks in the economy, or vulnerability in the Fed’s plan to raise rates at least two more times this year. Unless he softens his stance on additional rate hikes, any rally in gold is likely to be short-lived.
Today’s news about Norway and Libya are small events compared to concerns brewing over the possible exemptions to the sanctions against Iran. On Monday, U.S. Treasury Secretary Steve Mnuchin said some oil buyers could get waivers to continue buying Iranian supplies despite American sanctions on the Middle Eastern country.
On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets lose 0.5%-0.7% on Tuesday morning, global stocks mixed.
Gold prices were steady on Tuesday, as the U.S. dollar remained largely unchanged ahead of U.S. Federal Reserve Chairman Jerome Powell’s first congressional testimony.
The gold prices initially rallied during the Monday’s session but ran into trouble around the $1245 level, which is offering short-term resistance and pulled back. The weakness in the market is due to Saudi Arabia agreed on more supplies to the market and also strengthening USD is keeping the market under pressure.
Natural gas markets fell again during the trading session on Monday, as we continue to see selling pressure again. The natural gas markets are oversupplied, and quite frankly we are in a larger timeframe consolidation area that dictates we should go much lower.
Gold markets initially rallied during the day, reaching towards $1245 level before finding sellers again. Now that we have broken down after that initial rally, it looks as if there is still bearish pressure in the Gold markets that could come into play.
The British pound rallied a bit during the open on Monday, reaching towards the vital 1.33 handle. However, as I record this video I’m starting to see signs of exhaustion and believe that the market will continue to go lower from here. I recognize that the 1.32 level underneath is supportive though, so I would anticipate more demand down there.
Gold prices were little change on Monday initially attempting to move higher but failing and closing slightly lower. Prices are hovering near support, and Monday’s U.S. retail sales did little to buoy the yellow metal. Later in the week, Fed Chair Powell will testify in front of congress, with expectations of another 25-basis point rate hike baked in for the September meeting. The Eurozone trade balance narrowed as European export growth slowed.Technicals
Gold prices nudged higher in early trade on Monday amid a softer U.S. dollar and slightly weaker Asian shares, after sliding to their lowest in seven months in the previous session.