Gold and silver prices rose slightly in the US trading session on Tuesday, and traders focused on short-term futures trading in both markets today. This comes after recent losses that pushed prices for both commodities to a 12-month low. The absence of events and news about the world’s major market for gold and silver at the moment make traders rely on their strategies on fees, yet technical and technical analysis of both gold and silver is strongly bearish.
Gold futures for August rose about $1.60 to trade at $1,227 an ounce. The price of silver in the COMEX index rose $0.125 to trade at $15.545 per ounce.
Global stock markets rose in just a few hours. Accordingly, US stock indices moved higher when trading sessions on the New York Stock Exchange. The PMI index recorded a 54.3 point in July, down from its 54.9 mark in June. Figures above 50.0 point to expansion in the sector.
The rise in global government bond yields is featured in the market this week, with ideas being put forward by major central banks around the world to reverse their easy monetary policies.
Reports say that the Bank of Japan, for example, is about to reduce its very accommodative policies.
The big US economic data this week will be the first annual estimate of the GDP. The figure is expected to rise by 4.4%. However, some analysts expect a slightly higher 5.0%. US economic data due on Tuesday will include weekly retail sales, monthly house price index, US PMI, manufacturing PMI and the Richmond Fed survey.
Going back to gold, technically, gold traders have a strong technical advantage over the near term amid a bearish trend on the daily chart. The next bullish target for short-term gold is to close the August futures contract above the strong resistance at $1,250. The next short-term bearish target is to push prices below the strong technical support at $1,200. The first resistance appears at Monday’s high of $1235.20 and then $1240.00. The first support appears at the end of the trading session at $1,218 and then at the last week’s low of $1,210.
In September, speculators on September silver futures will have a strong technical advantage in the near term. The next upside objective for a bullish rally in silver prices is closing prices above the strong technical resistance at $16.00 an ounce. The next downside move for the pair is to close the pair below the strong support at $15.00. Initial resistance is at $15.625 and then $15.75. The next support appears at the low of the day at $15.34 and then at last week’s low of $15.185.
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