Gold Regains Ground; Base Metals Decline Amid Market Uncertainty

Aug 5

Gold Regains Ground; Base Metals Decline Amid Market Uncertainty


1. Technical Analysis: Gold

• Current Outlook:
  Gold prices have dropped but are nearing their support line at $2,397. A rebound is expected as long as prices remain above this level, potentially pushing towards $2,428 and $2,450.
  
  
• Bullish Scenario:
  If gold stabilizes above $2,397, the bullish trend could extend towards $2,420, and above $2,428, aiming for $2,450 and $2,466.
  
  
• Bearish Scenario:
  Stabilization below $2,397 could support a decline to $2,378, and further down to $2,356.
  
  
• Key Levels:
  - Pivot Line: $2,397
  - Resistance Levels: $2,416, $2,428, $2,450
  - Support Levels: $2,378, $2,359, $2,342
  
  
• Today's Expected Trading Range:
  The price is anticipated to fluctuate between the support level at $2,378 and the resistance level at $2,450.
  
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  2. Metal Prices Mixed; Gold Futures Regain Ground While Base Metals Fall
  
  Metal prices present a mixed picture, with gold futures rising 0.5% to $2,482.7 per troy ounce, recovering from late Friday's profit-taking. The yellow metal reached a new record high of $2,537.7 per ounce on Friday, driven by weak U.S. economic data that bolstered hopes of a Federal Reserve interest-rate cut. However, prices subsequently dipped as investors cashed in on the rally. In contrast, base metals are experiencing declines: copper is down 0.4% to $9,047.5 per metric ton, and aluminum is down 0.1% to $2,261 per ton. Over July, base metals suffered due to sharp investor de-risking triggered by falling Purchasing Managers' Index indicators, U.S. election volatility, disappointing Chinese political meetings, and waning patience for fundamental catalysts, according to JPMorgan analysts. Despite lingering supply concerns for copper, confidence in fundamentals must be restored for base metals to rally.

Aug 5

Note

The price about strong reversing