The African Standard bank released its daily commodities analysis and report for August 21. The report focused on analyzing the Chinese platinum market.
Gold might be looking for accommodative policy from the Fed for while a longer. The price of gold has moved up by almost $100 in the past two weeks. It’s now traded just below the strong resistance at $1,370 per ounce. If the FOMC minutes were seen dovish by the market, it’s highly likely to see the price advance towards $1,400 quickly.
The U.S. investors seem to be less bullish on gold than headlines suggests. That might be an indication of gold price rising due to long-term macroeconomics issues.
Asian demand on gold has been strong since May, especially from China. The U.S. market was cutting looses with short-coverings rather than being bullish. Short positions on COMEX were significantly down over the past two-weeks, while speculative longs weren’t changed much.
U.S. bullion coins sales declined significantly since May, which indicates less optimism about gold, or waiting for a conclusion about the Fed’s monetary policy in the next months.
Gold price support is at $1,360 and $1,340 while the technical resistance is at $1,370 and $1,400.