The African Standard bank released its daily commodities analysis and report for September 4. The report focused on analyzing copper inventory and prices.
The market participants are taking the back seat waiting for the U.S. non-farm payrolls for economy signs and the G20 meeting result around military intervention in Syria. This applies to the base metals and the precious metals markets.
Two small gold producers, Village Main and Evander gold Mine, settled wage arguments with the National Union of Mineworkers (NUM) in South Africa yesterday. Hopes renewed about ending the gold mining strike that started this week. The wage of the workers in those mines will increase by a range from 7.5% and 8% depending on the workers’ level.
Gold continued to struggle as the physical demand remained as it is. This raises the questionability of gold sustaining a move higher despite the weak physical demand.
Investors await the U.S. job data to be released this Friday. The current monetary policy is closely connected to the U.S. employment. The U.S. dollar index also is slightly stronger. As a result, the bank analysts expect gold to struggle on movements well above the $1,400 level.
COMEX gold future for December delivery settlement was at $1,383.70, DGCX gold future for October delivery was at $1,382.40, CBOT gold for December delivery at $1,390.10 and TOCOM gold for June delivery was at ¥4,493 per gram.
Gold price technical support is at $1,392 then at $1,372 while the technical resistance was at $1,412 and $1,424.