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Weekly Gold Report


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Gold prices rallied to a six week high closing at 1275.3 basis December futures. For the week gold futures rallied $14.00 while September silver gained 24 cents to close at 1669.5. With the rally gold has pushed through and closed above all major moving averages as economic data sunk this week the Dollar while outside markets like energy soared as well.Prices were supported in early trading this morning by slightly downbeat U.S. GDP data and reports that North Korea fired a ballistic missile in what was described as anunusual late-night test.The U.S. dollar index fell on a combination of underwhelming U.S. economic data and political uncertainty, while global stock markets were also weak. While the Fed this week left rates unchanged as was expected, their statement following the announcement was seen as dovish as gold and silver scored their best gains of the week following the FOMC announcement. Gold also received some fortuitous demand news for a change from the world's number two consumer China. China's first half gold consumption for 2017 increased by ten percent according to GFMS (Gold Fields Mineral Services),with their output revised down ten percent. More importantly 2017 second half forecasts for Chinese gold consumption were revised higher. Gold was also given some safe haven demand boosts from the political chaos in Washington as the health care reform vote failed while chaos reigns within the Trump administration. Simply put, traders didn't want to go home short in both precious metals and energy ahead of this weekend amid the re-emerging geopolitical mess with North Korea, and the political circus in Washington D.C. In my view seasonal buying has aided this rally as gold and silver performs best following the July 4th weekend up until Labor Day weekend.

Some of the major macro releases next week include latest employment figures — July’s ADP Employment Report is due on Wednesday and July’s non-farm payrolls are scheduled for Friday.Other notable U.S. reports include PMI Manufacturing Index, Factory Orders, ISM Non-Manufacturing Index and Trade Balance.Technical's read like this for next week's trade. For December gold, support is down first at 1253.2. A close below here and 1231.3 is next. Resistance sits up at 1287.0 and with a close over here 1298.9 is the next level up. For September silver, support is down at 1634.2 and with a close below 1599.1 is next. Resistance is up at 1692.7 and then up at 1716.1.

For those interested I hold a weekly grain webinar each Thursday at 3pm. It is free for anyone who wants to sign up and link for sign up is below. If you cannot attend live a recording will be sent to your email upon signup.

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About the author


Sean Lusk is a registered commodity broker and Director of the Commercial Hedging Division of Walsh Trading in Chicago. Sean began in the business as a runner on the trading floor during summer breaks from college in 1993. Upon his graduation from Southern Illinois University at Carbondale in 1996, Sean began his career on the trading floor of the Chicago Mercantile Exchange (CME). Overseeing billions of dollars of transactions working as a clerk in the Eurodollar pit, Sean took the next step and became a floor broker and member of the CME in 2003. He handled customer orders for banks and investment houses from all over the world from inside the Libor pit at the CME.

Now, at Walsh Trading, Sean utilizes his experience in the marketplace and his professional client service skills to aid and assist customers in their trading endeavors.  

He writes daily and weekly commentaries focusing on both the Precious Metals and Agricultural Markets along with related market activity.

Sean has been quoted in various media outlets discussing futures markets. 

These include:

 

  • Futures Magazine
  • Reuters
  • Forbes
  • Kitco
  • Nikkei Press
  • CCTV.com

 

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