A Gold Moment: July 30, 2014
Quiet dominated yesterday as the gold market approaches of some serious economic measures. Early today is the 2Q GDP is expected to show an annualized growth rate of +3%. This number’s importance was made when less than a moth ago, the 1Q GDP was revised downward to a -2.9%. The first quarter of this year was populated with many weather related excuses for the negative figure, but the second was free of any obstacles. The outcome of this factor will determine the view the maret will have on US rates for the coming months. Later today the FOMC statement is expected to be released with few, if any, significant changes from the previous statement. Traders’ reaction to the FOMC will be in the shadow of the GDP. How the market moves will betray the beliefs of money managers in rates and the future of economies.
Although the fighting in Gaza and Ukraine have not stopped, nor have the sanctions against Russia, attention should be given to shifts in these struggles despite the market’s current focus on the value of money and not the risk of flow.
Technically, trading remains inside a consolidation range of 1292-1308 and the wider view of 1286-1314. Outside of these ranges, the market could seea continuation in the direction of the breakout. Until then, expect to see defense of the range with speculators buying the weakness and selling the strength.
ETF: GLD Deposits: 801.84 tonnes unch
Comex GC O.I. : 388,055 -6883
ETF: SLV Deposits: 10,014.63 tonnes unch
Comex SI O.I.: 158,375 -902