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USAGOLD/Peter Grant/07-20-17
Gold has once again rebounded from modest overseas downticks to keep the pressure on the upside. The dollar gave back earlier gains, keeping focus on the downside, which bodes well for the yellow metal.
The ECB held steady on policy today, as was widely expected. More importantly perhaps, there was no hint of QE tapering in the policy statement. That initially pushed bund yields and the euro lower, but those losses could not be sustained as Mario Draghi began to speak. Despite his foot still being on the monetary gas pedal, he remains optimistic about the European economy. While Draghi claims tapering scenarios are not being discussed, markets appear to be expecting to hear something on that front come September.
On gold we’re still eying resistance at 1248/1250. A push through this zone would return considerable confidence to the uptrend that has dominated this year.
Initial jobless claims fell more than expected last week to 5-month lows. The Philly Fed index tumbled to 19.5 in July, below expectations of 22.5, versus 27.6 in June.
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