Key Levels In Gold & Silver!

Weekly Focus

It was a tough week for markets. Global sentiment deteriorated, and economic data continued to show declining growth. Traders shifted to a "risk off" environment with expectations for the Fed to cut interest rates for the first time in September to a 98.1% chance. The Dollar Index and two-year treasury yields bounced off their June lows, putting pressure on commodity markets.

Economic Focus

Traders will start the week with lighter economic data.

Tuesday - we will see Existing Home Sales and the Richmond Manufacturing Index.

Wednesday - begins with Trade Balance Data and Wholesale inventories, followed by Flash Manufacturing PMI and Flash Services PMI. New Home Sales will be released afterward, followed by two Fed speakers.

Thursday - Advance GDP q/q, Advance GDP Price Index q/q, Unemployment Claims, Core Durable Goods Orders m/m.

Friday - Core PCE Price Index m/m, Personal Income m/m, Personal Spending m/m. Revised UoM Consumer Sentiment, Revised UoM Inflation Expectations.

Gold 
 

Technicals (August)
It was a week of mixed emotions as Gold futures reached new all-time highs last Wednesday at 2,488.4/oz before finishing the week near 2400. The selloff was slow and steady, likely due to broader liquidation from outside markets, which left futures down 0.74% on the week. If the bulls cannot defend 2400, futures will likely trade down to the 50 DMA at 2375.

Daily Stochastics are correcting from overbought territory, while DMI + converges with DMI -, leaving the market on shakey grounds. The 14-day average true range is 37.1, and our Trend Neutralizer level is 2385.6.

Commitment of Traders Update: Friday's Commitment of Traders report showed funds adding to Gold this week. The net long futures and options position is 312,124 futures—a rise of 30,016 contracts.

Bias: Neutral/Bullish

Resistance:  2448.4-2450.0**, 2488.4****

Pivot: 2400 (Psychological), 2375 (50 DMA)

Support:  2375***, 2358.6*** (Bull Trend Neutralizer)

Below is a Daily chart of August Gold futures

Silver
 

Technicals (September)
Futures slipped 5.64% this week, influenced by outside markets such as Copper and further deterioration in the Chinese economy. The disconnect from the Gold market has pushed the Gold/Silver ratio back to 81:1. Friday's selloff below our Bull Trend Neutralizer level of 29.87 shifted many traders to the sidelines, leaving our proprietary signal Neutral. It will take a move above 31.76 to capture a bullish trend, while a close below 28.96 enters a new Bear market.

Daily Stochastics are correcting from overbought territory, while DMI - is attempting to cross above DMI +. Often, a negative crossover sets the stage for a larger correction. The 14-day average true range is 95 cents.

Commitment of Traders Update: Friday's Commitment of Traders report showed funds reducing Silver this week. The net long futures and options position is 80,291 futures—a decline of -535 contracts.

For Swing Traders

Bias: Neutral

Resistance:  30.42*** (50 DMA), 31.76****

Pivot: 30.00

Support:  28.96*** (Bear Trend Trigger), 28.62***

Below is a daily chart of September Silver futures

Connect with Phill: https://bluelinefutures.com/2023-signup/?utm_source=Phil-Streible- 

Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.
With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
 

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.