On August 28, sentiment in the precious metals complex shifted as gold traded with a soft bias, dipping to the first support level we identified at 4,565. Several Federal Reserve officials reinforced a hawkish stance, with Hammack reiterating that interest rates remain insufficiently restrictive in the fight against inflation. In parallel, Schmid noted that policy remains overly accommodative with inflation persisting above target, while also suggesting there is scope to reduce the number of Fed meetings. Goolsbee added that the most pressing near-term concern is the failure to fully tame price pressures, with tariff and conflict-related price increases posing significant challenges.
In the geopolitical arena, Kuwait and Qatar have raised crude exports through the Strait of Hormuz, with volumes recovering to 70% of pre-conflict levels. Shipping traffic through the strait saw a modest rebound on Wednesday, although transits through the Bab el-Mandeb Strait have slowed. Iran's oil minister stated that the nation's oceangoing oil sales and deliveries continue despite a reduction in volume. The White House confirmed that no negotiations are currently underway regarding Iran, while stating that all options remain on the table.
Technical Outlook for Spot Gold: Yesterday's daily chart recorded a modest bearish candle, with the Bollinger Bands beginning to contract, signaling an imminent directional breakout. The KDJ indicator has formed a death cross, while the MACD fast line remains above the slow line though the red histogram is progressively fading. The broader trend remains upward, with the medium-term outlook maintaining a phase of staged gains. On the 4-hour chart, the Bollinger Bands are poised to tighten, also hinting at an approaching directional move. The KDJ has formed a golden cross, and the MACD fast line sits below the slow line with the green histogram gradually contracting. On the hourly chart, the Bollinger Bands are also coiling, with the KDJ golden cross showing volume expansion and the MACD fast line above the slow line as the red histogram spreads. The short-term pullback has unfolded as anticipated, with attention now focused on the extent of this correction. Support levels are located at 4,603, 4,565, and 4,645, while resistance is found at 4,635, 4,661, and 4,696.
Shanghai Gold: Upside focus is on 1,003 and 1,005, with downside support at 990 and 983.
Technical Outlook for Spot Silver: The broader trend is marked by wide-range fluctuation, with the medium-term bias turning to staged declines. The short-term pullback has unfolded as expected, and current attention is on the depth of this correction. Resistance is seen at 72.5 and 75, while support is located at 67.8 and 63.
Shanghai Silver: The immediate trading range is set between 16,200 and 17,250, with the broader band stretching across 15,040 to 17,890.
This content is provided for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and assume full responsibility for their trading decisions.
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