Gold Prices Stall Amidst Sideways Trend
The sideways trend in gold and silver prices is expected to continue, with gold trading between $3,475.00 and $3,250.00, and silver potentially seeing more upside in the near term, driven by a combination of bullish and bearish factors, including geopolitical tensions, economic numbers, and market sentiment.
Gold and silver markets are experiencing low trading activity due to summer vacations in Europe and the US, resulting in a decrease in market activity. Despite this, the bullish case for gold and silver remains strong, driven by factors such as bullish charts, geopolitical tensions, and improved economic numbers from the US and China.
The bullish case for gold and silver is supported by short-term and long-term charts, which indicate a potential upside. Additionally, the ongoing Israel-Syria conflict and the Russia-Ukraine war are contributing to geopolitical tensions, which could boost gold and silver prices. The recent improvement in economic numbers from the US and China, as well as the up-trending crude oil prices, also support the bullish case.
However, the bearish case for gold and silver cannot be ignored. The calm market mentality, which has pushed US stock indexes to record highs, and the rising US Treasury yields are weighing on gold and silver prices. Furthermore, early technical and fundamental clues suggest that the US dollar index has put in a major bottom, which could lead to a strengthening US dollar and negatively impact gold and silver prices.
According to Jim Wyckoff, gold prices are likely to continue grinding sideways between $3,475.00 and $3,250.00, while silver may see more room to run on the upside in the near term. The stall in gold prices can be attributed to the strengthening US dollar, concerns over sticky inflation, and uncertainty surrounding the Federal Reserve's next move.