Gold prices saw a slight increase at the start of trading on Thursday in the US, supported by a lower US dollar index and stable crude oil prices. Traders are looking for the next fundamental input to boost the metal market, but they may have to wait until next week. August gold rose by $1.70 to $1,960.
The market is starting from scratch in next week's FOMC meeting of the Federal Reserve. Most of the market believes that the Fed will pause its tightening cycle. However, now many market watchers think that the US central bank will follow recent moves by the Bank of Canada. The BOC raised interest rates by an additional 0.25% this week after a four-month pause.
Technical advantage in the short-term benefits gold future speculators. Their goal is to create an August future contract that closes above a strong resistance level of $2,000. Meanwhile, bears aim to push the contract price down below a technical support level of $1,949. The first resistance level is at $1,975, followed by the highest level this week at $1,986. The first support level is at the lowest point this week, which is $1,953, and then the lowest point in May at $1,949.
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