Gold’s Next Hurdle 

Gold and other precious metals have been under pressure against a rising yield backdrop, while stubbornly high inflation remains a focal point.  

Gold Futures (COMEX: GC) have been trending lower over the month despite a slight easing in US core inflation data, but the real risk of tightening remains. Monetary tightening remains which will bring the Fed’s meeting minutes scheduled for Wednesday back into focus. The stronger Dollar and rising US Treasury Yields have put a dent in Gold’s step as the price of the precious metal is approaching a significant support level.  


Looking at the daily chart of Gold, we can see that the price action has been trending lower over August. The price action is now at a major support level of around $1943/ ounce (red line), which will be watched closely this week. If the support structure does not hold, we could expect lower support levels around $1930 and $1910/ ounce to be in focus.  

If the significant support level holds, the possibility exists for the price to trend higher to the overhead resistance around $1960 and $1980/ ounce.  


Economic data remains topical this week, with the FOMC Meeting Minutes scheduled for Wednesday, which could bring back some market volatility. Significant levels of support to watch are the $1943 and $1910/ ounce, while the overhead resistance at $1960 and $1980 comes into focus if the price action trends higher from current levels.  

Source: Reuters, Koyfin, TradingView.  

Piece written by Barry Dumas, Head of Client Education 

DISCLAIMER: This report has been prepared by Fairmarkets International (“The Company”). This document is not intended as an offer, solicitation or recommendation to buy or sell financial instruments or to make any investment. The Company has used reasonable efforts to obtain information from reliable sources and the report is provided without representation or warranty of any kind (neither expressed nor implied).  The Company and Fairmarkets International disclaims liability for any publication not being complete, accurate, suitable and relevant for the recipient. Specifically, the Company and Fairmarkets International disclaims liability towards any user and other recipients of this report.