Gold

Although gold futures have exhibited solid gains over the last two months today traders and market participants kept the precious yellow metal in a narrow and defined trading range. Gold futures basis most active August contract traded to a high today of $1430.80, and a low of $1423, resulting in a tepid eight dollars trading range.

Although gold prices have pulled back substantially from the highs achieved yesterday and today, the precious yellow metal did close higher on the week. More importantly today’s low which came in at $1421.10 matches the former resistance trend line which was created from a series of lower highs on a daily gold chart.

It seems when it rains it pours, as multiple variables collectively had a profound and bullish impact on market sentiment for both gold and silver. Gold futures gained over 1.5% in trading today, while silver gained almost 2.5%. These events include a statement by John Williams President of the Federal Reserve Bank of New York. The news of the U.S. Navy shooting down an Iranian drone.

Both gold and silver are trading higher today, with both precious metals showing strong and respectable gains on the day. Silver is continuing its remarkable breakout gaining over 2% in trading today. Gold has closed at the highest trading point this year, and in fact the highest trading point over the last six years, gaining 1.16% in trading today.

As you know, on any given day the price change in gold is the result of the combination of dollar strength or weakness and bullish or bearish market sentiment bidding the precious yellow metal higher or lower. In today’s case the vast majority of gold’s decline can be directly attributed to dollar strength.