Standard Bank Daily Gold Price Analysis for August 5

Standard Bank

The African Standard bank released its daily commodities analysis and report for August 5. The report called attention to platinum and precious metals.

Last week’s US economic data releases were bullish for industrial commodities and bearish for precious metals. The FOMC statement and the U.S. non-farm payrolls numbers foreshadowed investors and traders doubts in ending or tapering the QE program in September. The precious metals gained some time before facing heavy selling pressure on Feds news till the next FOMC meeting in September.

Gold price seemed to remain range-bound between $1,300 and $1,340 marks, as the $1,340 level will likely be a strong resistance.

Gold speculative longs were down by 10.4 tonnes to reach 537.3 tonnes this week. On the other hand, speculative shorts were up by 8.6 tonnes to reach 370.5 tonnes. ETF holdings dropped by 7.9 tonnes, to be this week 2,028.3 tonnes.

Physical demand on gold should improve if the prices were below $1,300. Shanghai Gold Exchange premium rose from $17 last week to $22 per ounce.

Investors remain hesitating about adding long positions in gold future market, according to CFTC latest data. As a result, gold speculative longs keep shrinking, nearing June’s low at 508 tonnes, and speculative short remains relatively high at 371 tonnes.

Gold technical support is at $1,300 and $1,290, while resistance at $1,319 and $1,325.

Full Report