New reports show that the price of gold dipped slightly this week after hitting a new record of $2,617.40, based on Comex December futures. The price of silver has also risen slightly, with figures showing that the metal’s price rose to $31.23, a $0.16 increase.
The Fed’s Open Market Committee meeting, which ended yesterday with a press conference and statement from Jerome Powell, the Fed’s chairman, is this week’s data point. In July, the committee kept the rate of federal funds unchanged at 5.25–5.5%, while decreasing holdings of U.S. Treasury securities.
Latest figures show that thinking in the marketplace has slightly shifted, with some now in favor of a 0.5% reduction in rates.
In other news, China’s economic data was more downbeat, a move that will see markets revise their expectations for lower growth while others call for additional stimulus from the government. Slowdowns were observed in both consumer spending and industrial production, with new data also suggesting that there were challenges in achieving the 5% rate of growth in GDP for the year.
August data shows that retail sales and industrial production in China was also lower than expected for the country, which is the second-largest economy globally. The country’s property sector also continues to fall behind, with prices, sales and investments also dropping.
From a commercial and consumer demand perspective, weaker data from the east Asian country may be driving the bullish performance of the precious metals market.
Other outside markets also anticipate the dollar index to go lower. Benchmark 10-year U.S. treasury note yield seems to be dropping, presently going for 3.64%. Nymex prices on crude oil are trading at $69.20 per barrel, which is higher.
On the near-term, gold bulls have a strong technical advantage. The next objective in price is to induce resistance at $2,700. First resistance was observed at the high of $2,617.40, which rose to $2,625. On the downside, the price goal is to push futures prices below technical support at $2,500. First support was observed at last week’s low of $2,585, which dipped even further to $2,570.40.
On silver, the metal’s futures bulls have the technical advantage in the near-term. The next downside objective for the metal is closing prices at $29, which is below solid support, while the upside price goal is prices at highs of $32.46, which is above solid technical resistance. Next support is observed at $30.67 while first resistance was observed overnight at the $31.46 high, which rose to reach $32.
Gold industry actors such as Torr Metals Inc. (TSX.V: TMET) will be keeping tabs on the cyclic movements of the price of this precious metal since its long-term trajectory could impact the value the company offers to its stockholders.
NOTE TO INVESTORS: The latest news and updates relating to Torr Metals Inc. (TSX.V: TMET) are available in the company’s newsroom at https://ibn.fm/TMET
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