Gold price modestly up as marketplace still edgy

New York (Aug 20)  Gold prices are modestly higher in early morning trading Friday, on some more safe-haven demand amid keener risk aversion that has been in the marketplace all this week. However, better gains in the precious metal are being squelched by a stronger U.S. dollar index and eroding crude oil prices. October gold futures were last up $2.30 at $1,783.20 and September Comex silver was last down $0.06 at $23.17 an ounce.

Global stock markets were lower overnight. The U.S. stock indexes are pointed to lower openings when the New York day session begins. The U.S. stock index bulls are fading as the indexes are headed for their worst week since June. The CBOE volatility index has risen to its highest level since May. Keener risk aversion has been in play all this week. Many raw commodity futures markets have been hit by the risk-off attitudes. The surging coronavirus delta strain is starting to more significantly impact global economies. The Federal Reserve this week said it remains concerned about the effects of the pandemic on economies and financial markets. While the Fed appears to be presently leaning toward tightening its monetary policy as early as this fall, some market watchers now wonder if the Fed will have to hold off on tightening if the virus continues to negatively impact businesses. Traders and investors are looking ahead to the annual Federal Reserve symposium in Jackson Hole, Wyoming, next week. More clarity on U.S. monetary policy is likely to come out of that meeting.

The key outside markets today see the U.S. dollar index slightly higher and hitting another 10.5-month high overnight. Nymex crude oil futures prices are lower and near the 2.5-month low hit Thursday and are trading around $63.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.232%.

There is no major U.S. economic data due for release Friday.

Technically, October gold futures bulls have the slight overall near-term technical advantage and have momentum on their side. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week’s high of $1,795.00 and then at $1,800.00. First support is seen at this week’s low of $1,769.80 and then at $1,760.00.

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