Factory orders and construction spending down, Gold and Silver up.
Construction spending dipped to -0.1% for May with Factory orders also sliding to -0.5% in a pattern that looks to reaffirm the easing economy in the US. With policy makers now split on whether to begin monetary easing or continue to squash inflation into the ground, we’d expect to start hearing clear direction on interest rates in the very near future. Earlier in the week, Fed Chair Powell remarked that the disinflation process has resumed but emphasised the need for further progress before considering any interest rate cuts. He added, “Because the US economy is strong and the labor market is strong, we can take our time and get this right.”
Gold and Silver pricing rallied more than 1% on Wednesday on the back of softer than expected jobs data, somewhat contradicting Fed Chair Powell’s comments made earlier. Unemployment in the US is now sitting at 4%, and non-farm payroll reporting for June (expected today) is anticipated to only add 190,000 jobs to the market compared to the 270,000 jobs added in May. With much contradicting data flowing through the system at present, it’s likely we’ll see something break before too long.
Enjoy today’s charts and forecast.
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
US500, with 200MDA
ASX200, with 200MDA
Gold Futures Technical Analysis
Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a STRONG BUY signal.
Technical indicators – Monthly Projections
| RSI(14) | Buy |
| STOCH(9,6) | Neutral |
| STOCHRSI(14) | Overbought |
| MACD(12,26) | Buy |
| ADX(14) | Buy |
| Williams %R | Overbought |
| CCI(14) | Buy |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Buy |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
Summary for Monthly Forecast: Strong Buy
*Not financial advice, please DYOR prior to any investment decisions you make.
