Gold Extends Early Gains, Up Sharply On The Day

Gold Prices, Tuesday. Sep. 3rd, 2019 – Bid/Ask
Low/High	1522.70 / 1544.60
Change	+14.40	+0.94%
30daychg	+102.90	+7.15%
1yearchg	+342.00	+28.48%

(Kitco News, Monday, Sep. 3rd, 2019) – Gold prices are trading over $20 an ounce higher in late-morning price action Tuesday, following some downbeat U.S. economic data. The U.S. ISM August manufacturing purchasing managers index (PMI) came in at 49.1 versus 51.2 in July. A reading below 50.0 suggests contraction in the sector. Also, July U.S. construction spending came in at up a paltry 0.1% from June, which was also a miss to the downside. These reports fall into the camp of the monetary policy doves, who want to see the Federal Reserve lower interest rates. Geopolitical concerns already had gold trading with double-digit gains, before the U.S. data was released. December gold was last up $23.10 at $1,552.40.

Gold and Silver Popping

As gold and silver consolidate in a range both appear to be attempting to breakout this morning which would set them up for more new highs. This is the pattern they are in: a big rally, settling back into a consolidation level at support and then a breakout to new highs.This ties into the phases of the markets which are consolidation breakout and blow off which is exactly what we continue to see in gold and silver. The trend is up, the next run should take gold to $1,600 and silver to $19.00 for the next round of co4nsolidation.Support in gold and silver have established themselves at solid levels, $1,525 gold and $18.10-$18.20 silver. Those levels should be used to be buyers. There appears to be no sell off in sight although we do expect pullbacks to support as we expect the rally to continue.

Posted By :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com

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