James Hyerczyk
Add to Bookmarks
Gold, Silver, Platinum, Palladium

Gold futures are inching toward a new contract high early Tuesday and spot prices are nearing a nine-year high as demand is being boosted by expectations of higher inflation from more stimulus measures to mitigate the economic blow from a possible second-wave of COVID-19 cases.

Advisers to U.S. President Donald Trump and congressional Democrats were set to discuss the next steps in responding to the coronavirus crisis on Tuesday, with congressional Republicans saying they were working on a $1 trillion relief bill.

Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

At 04:17 GMT, August Comex gold futures are trading $1821.20, up $3.80 or +0.21%.

Gold tends to benefit from widespread stimulus measures from governments and central banks because it is widely viewed as a hedge against inflation and currency debasement.

Daily August Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade though $1829.80 will reaffirm the uptrend. A move through $1766.30 will change the main trend to down.

The minor trend is also up. The minor trend changes to down on a trade through $1791.10. This will also shift momentum to the downside.

The minor range is $1829.80 to $1791.10. Its 50% level at $1810.50 is support.

The short-term range is $1754.00 to $1829.80. Its 50% level at $1791.90 is another support level.


Daily Swing Chart Technical Forecast

Look for the uptrend to continue to extend toward the main top at $1829.80 as long as buyers continue to support the minor pivot at $1810.50.

Side Notes

The market is moving higher on speculation of more fiscal stimulus. This is driving the short-term trend and the rally will likely end when the deal is done. We’re basically seeing the early stages of a “buy the rumor, sell the fact” situation.

Monetary stimulus from the Fed would be the main driver of the longer-term trend. In that case, the rally would last longer.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker