Metal Prices: Gold Recovers Amid Fears of Indecision in the Fed

XAUUSD is now moving at 1,404, 0.35% positive on the day. Technical indicators suggest more room for the downside, but the chart pattern is showing robust middle-term support at 1,380.
Mauricio Carrillo
Metal Prices: Gold Recovers Amid Fears of Indecision in the Fed
Metal Prices: Gold Recovers Amid Fears of Indecision in the Fed

As anticipated on Friday, markets are opening this week with a hangover from last week inactivity. US holiday of Fourth of July and a stronger than expected job reports are the reason.

Experts are now weighing between a good job report in one hand and a rate cut by the fed in the other side.

Fed Chairman Jerome Powell is expected to talk today and to provide further explanations on the intentions the Fed could have in line of its next FOMC meeting in July.

Mitsubishi analyst Jonathan Butler said in a recent note to his clients that “the Fed is likely to cut interest rates as early as this month and in that environment, gold as a non-yielding asset ought to do better and would be more attractive to investors in a world of lower interest rates.”

Gold recovers ground but remains in the range

XAUUSD daily chart July 8

Gold is trading positive on Monday as investors are digesting a stronger than expected jobs report in the United States released Friday. XAU/USD is fighting to hold levels above the 1,400 area after finding support at 1,390 earlier in the day.

The metal is now moving at 1,404, 0.35% positive on the day. Technical indicators suggest more room for the downside, but the chart pattern is showing robust middle-term support at 1,380.

On Monday, XAU/USD is keeping prices between 1,380 and 1,440, the range it has been trading since June 20.

The strong jobs report is also fueling losses in the US equities markets and gains in the US Dollar index. However, it is also pushing gold prices higher.

FX Empire analyst James Hyerczyk believes that “some traders feel that Friday’s weakness may have been an overreaction to the better-than-expected jobs data.” However, “the news may not be enough to sway the Federal Reserve from cutting its benchmark interest rate at its July 30-31 monetary policy meeting.”

So, the synergies in the gold market remain the same as the last week.

Metals report for July 8

Silver is opening the week with a positive note after the unit found support at 14.90 on Friday. On Monday, XAG/USD is trading 0.75% positive as it rose from an opening price around 15.00 to current highs at 15.12.

Technical indicators are mixed for silver with the 15.15 level acting as a resistance. To the downside, keep an eye to the mentioned 14.90.

Copper is trading positive on Monday after logging two negative sessions in a row. XCU/USD is testing the upper side of the range it has been trading since July 2 between 2.6500 and 2.6855. XCU/USD is now moving 0.75% positive on the day at 2.6860.

Palladium remains in consolidation mode around highs since March 2019, as the unit is trading in a small range between 1,555 and 1,575.

On Monday, palladium is trading 0.42% negative with the XPD/USD moving at 1,565. Technical conditions don’t show healthy conditions for a bullish continuation.

Platinum is consolidating low levels after the collapse from 839.00 to 804.90 performed on Friday. On Monday, XPT/USD is posting 0.25% gains as the unit is moving at 812.00.

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