04 August
Gold and silver market
Spot Gold prices have faced a decline for the third consecutive trading session, reaching a three-week low due to the impact of higher US Treasury bond yields on the non-yielding metal. Additionally, the softening of the US Dollar (USD) has contributed to this trend during Thursday’s trading session.
The US economic docket revealed Initial Jobless Claims for the week ending July 29, coming in at 227K as expected. This could encourage investors to view the labor market as easing, but the releases in the past three months make it challenging to assess the job market trend accurately.
Following the data release, the ISM Non-Manufacturing PMI for July decelerated to 52.7 from June’s 53.9, missing the estimated 53. This data indicates a slowdown in business activity, but it remains uncertain if the services segment in the US will fall into recessionary territory.
Considering the daily chart perspective, XAU/USD has a neutral to downward bias as the yellow metal dipped below the 50, 20, and 100-day Exponential Moving Averages (EMAs) located at $1950.18, $1,949.83, and $1,941.06, respectively. Currently testing the May 30 daily low of $1,932.20, a decisive break could expose a support trendline around $1,915/20 before Gold reaches $1,900. On the other hand, if buyers maintain prices above the former, the first resistance would emerge at the 100-day EMA, followed by the confluence of the 20 and 50-day EMAs, approximately at $1,949-$1,950.
– Nitin Kedia
