The African Standard bank released its daily commodities analysis and report for August 12. The report analyzed the macroeconomic data for the commodity market and gold.
The bank analysts read the macroeconomic data as “marginally” positive for industrial and base metals, and bearish for precious metals. The Chinese trade data for July released today supported the bank’s view, according to the bank strategists. Their view is commodity markets are even surplus, or on their way to be soon. Upside surprises in the macroeconomic data might create a potential upside for some commodities, such as gold.
The Shanghai Gold Exchange premium for gold eased on Monday to $22.31 per ounce from $24.04 per ounce high on Thursday last week. This indicates demand easing on gold above $1,300.
The U.S. 10-years bond yield stayed almost flat at 2.60% for the past week, and the USD was weaker which supported gold price. The bank’s G10 Foreign Exchange analyst expects the USD to weaken more and target the 1.35 rate against the Euro. The bank expects the Feds is more likely to announce tapering its monthly bond-purchasing program in September FOMC meeting.
Gold technical support is at $1,307 and $1,300 while the technical resistance is at $1,330 and $1,336.