Gold price near steady as bulls remain confident

New York (Aug 24)  Gold prices trading near unchanged in early morning action Tuesday. The market is pausing after good gains posted Monday, which restarted a price uptrend on the daily bar chart. The precious metals bulls are also encouraged this week by growing ideas the Federal Reserve will not be able to start tightening its monetary policy as soon as many had reckoned just a few weeks ago. October gold futures were last steady at $1,804.00 and September Comex silver was last up $0.074 at $23.73 an ounce.

Global stock markets were flat to firmer overnight. The U.S. stock indexes are pointed to higher openings and at or near record highs when the New York day session begins. The U.S. stock index bulls are back in full technical command, to suggest still more upside in the near term. Fundamentally, traders are presently putting more emphasis on strong corporate earnings reports and recent solid U.S. economic data, and less emphasis on the surging coronavirus that may have the potential to damage major economies again in the coming months. This long-time market watcher is wondering if that pendulum will swing the other way after the U.S. Labor Day holiday, when the stock and financial markets enter what can be the historically rough waters of September and October.

The attention of the marketplace this week is on the annual Federal Reserve symposium held in Jackson Hole, Wyoming, starting Thursday. Fed Chair Jerome Powell is slated to speak virtually on Friday. The confab has been pared back a bit and parts of it will be virtual this year due to the spreading delta variant of the coronavirus. Many traders and investors are now thinking the Federal Reserve will lean less hawkish on U.S. monetary policy at the Fed symposium, due to the rapidly spreading Covid variant.

The key outside markets today see the U.S. dollar index a bit firmer and still trending higher. Nymex crude oil futures prices are higher and trading around $66.60 a barrel. This week’s strong rebound in crude prices suggests the market has put in a near-term bottom. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.267%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store sales indexes, the Richmond Fed business survey, and new residential sales.

Technically, October gold futures bulls have the overall near-term technical advantage and have momentum on their side. Prices are in an uptrend on the daily bar chart now. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,836.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at Monday’s high of $1,806.70 and then at $1,815.00. First support is seen at $1,790.00 and then at Monday’s low of $1,775.90.

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