Gold & Silver Market Analysis for Monday 2nd of August

Carlo Alberto De Casa

02/08/2021

Macroeconomics calendar – Investors are waiting for the NonFarm Payrolls

The macroeconomic calendar of the new week is relatively busy. The agenda starts with the Purchasing Managers’ Index (PMI) data for China, the US, Germany and the United Kingdom. Investors are awaiting the New Zealand Central Bank’s decision regarding the interest rates, expected to hold steady at 0.10%.

Investors eyes’ are already focusing on the ADP National Employment Report, which will be released on Tuesday and especially the nonfarm payrolls, to be released Friday afternoon and expected at +900,000.

These figures will tell us more about the solidity of the US job market recovery and can impact the Federal Reserve’s tapering procedure start, planned in the next few months. Any data below expectation could reduce Fed’s rush to trigger the procedure of liquidity reduction, while data below expectation could force the Federal Reserve to anticipate the tapering.

Kinesis Gold Analysis

The gold price is currently traded at $1,810. Bullion jumped up to $1,830/ 1,835 on Friday but it was unable to hold gains, returning – once again – in the lateral channel between $1,790 and $1,820. We are seeing a massive battle between bulls and bears, with bulls that have been really close to taking control.

Gold Price in Dollar per Gram – Kinesis Exchange. The resistance zone of $59 has stopped twice bullion recovery, but bullish pressure is growing

The technical scenario is showing the growing strength of bullion, even if the return below $1,820 is stopping – at least for now – further rallies. The picture could change if bullion manages to surpass $1,820 once again, and the level of $1,835, which has already been reached twice in the last ten days. Both time sellers were really active in this area, but bullish pressure seems to be growing.

Kinesis Silver Analysis

Silver showed recovery signals in the final part of last week, with the price jumping to $25,5. The silver metal is currently playing with the resistance placed at 25,5/25,6, while the $26 mark still seems to be the main short term target. The scenario could reverse with a strong surpass of $26,6, opening space for new recoveries.

Carlo Alberto De Casa is Market Analyst for Kinesis

He also writes as a technical analyst for the Italian newspaper La Stampa.

Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. 

This report is not an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance.

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