The US August ADP jobs failed to have any impact on gold, silver and the currency markets. It was just a technical trade. Challenger job cuts, US weekly initial jobless claims and other numbers are there today. Tomorrow the big US August nonfarm payrolls.
All I can say that comex gold December needs to trade over $1890 to be in short term bullish zone.
A NewYork Times report says that “The Centers for Disease Control and Prevention has notified public health officials in all 50 states and five large cities to prepare to distribute a coronavirus vaccine to health care workers and other high-risk groups as soon as late October or early November.”
Gold and silver could see a big sell off for once if the covid vaccine is ready before the US presidential elections. Thereafter the process of how the vaccine is distributed and accepted by Americans will be the key. Right now there is still uncertainty over vaccine effectiveness. It will take a few months for the vaccine to reach the masses.
There are production constraints which needs a serious look. I hope the world does not see another trade war due to “USA and USA first policy” by the American political leadership. Every nation will want to get the vaccine for its people at the earliest. American politicians have the policy of threatening nations using trade alienation.
At the end of the day any ten percent or more correction (if any) in gold, for the rest of the year should be used to invest for a period between one year to five years.
The Fed Beige book
It says jobs are there in a manufacturing sector while service sector jobs continue to remain soft. August is generally a holiday month. I expect US jobs to rise sharply in September month and October, before the US presidential elections in November.
Remain on the sidelines today as well. If gold and silver fall today, then yesterday’s lows will be broken.
COMEX GOLD DECEMBER 2020 – current price $1951.80
- There is very big support between $1888-$1911-$1927.50 zone. Only a fall below this zone will result in a sell off.
- In case gold does not fall below this zone (by 16th September) , then it will rise to 2115.70 by end September.
- Today gold needs to trade over $1935 to rise to $1990.40. Gold will crash only if it trades below $1935.