Morning Gold: The Market is Watching Gold Rising

Gold and dollar

(Kitco News) – On Thursday, in early U.S. trading gold prices are moderately higher, as the market pauses after Wednesday’s decline to a nearly three-year low. Investors and traders are “in anticipation of fresh fundamental inputs” to make a movement in the markets. Thursday, the U.S. economic data, could trigger for price movement. Spot gold was last quoted up $7.50 at $1,233.50. Comex August gold was last up $2.60 at $1,232.80 an ounce.

Thursday morning, the market is a little quieter. Wednesday’s weak final revision to U.S. first-quarter gross domestic product is at up 1.8% on an annual basis against the previous estimation of up 2.4%, it suggested the market watchers worldwide that the Fed can’t be unusually strong on tapering its easy monetary policy. Motionless, the trend of U.S. economic data released lately has been strong, and most traders and investors believe the Fed will begin to back down on its quantitative easing of monetary policy at the end of the current year.

Thursday, the Asian stock markets, were generally higher, after Wall Street’s strong gains on Wednesday. Whereas the European stock markets were weaker Thursday, nevertheless losses were trimmed after better German unemployment and Euro zone consumer confidence data that was released.

Thursday morning, the U.S. dollar index is weaker, on some slight profit taking after hitting a 3-week high on Wednesday. The USD bulls on their side are still having technical momentum, which is a bearish element for the markets of precious metals.

The U.S. economic data that are released on Thursday contains personal income and outlays, weekly jobless claims, the pending home sales index, the Chicago Fed Midwest manufacturing index and the Kansas City Fed manufacturing survey.

The London previous London P.M. fixing of $1,236.25 and new A.M. gold fix is $1,232.00.

Technically, August gold futures prices are in an 8-month-old downtrend on the daily bar chart. The next major, longer-term downside price targets are $1,100 and then at $1,027 for close Comex futures. The $1,088 price level for near Comex gold futures, putting a mark on 50% Fibonacci retracement level of the trending up price movement from the 2001 low to the 2011 record high. If that key technical level is broken on the downside, it’ll be a warning chart development. The gold bulls’ next upside near-term price objective is to produce a close over psychological resistance at $1,300.00. The gold market bears remain in strong near-term technical command. Bears’ next near-term downside breakout price objective is closing prices below psychological support at $1,200.00. The first resistance is sighted at the overnight high of $1,244.20 and then at $1,250.00, as for the first support is sighted at Wednesday’s low of $1,221.00 and then at $1,200.00.