Fundamentals for the Day
7.30 pm CB Consumer Confidence
New Home Sales
Richmond Manufacturing Index
Market Commentary
Pullback After $4,697, But $5,104 Remains Our Bigger Target
Gold has made a high of $4,697 and is now turning lower, as we mentioned in our earlier report. After crossing $4,605, Gold reached the next ZIGZAG point at $4,689, before reaching our next target of $4,773.
Gold is currently taking a breather after a one-sided $380 move. A small recovery in the Dollar Index is also contributing to this short-term pullback. our view remains unchanged: Gold is still on its way toward $4,773.
We had already mentioned that Gold could open the door toward $5,104 once the $4,773 target is achieved. Why are we highlighting this again now? There are two key reasons:
The U.S. Treasury has more than doubled its bond-buyback operation, with the possibility of utilizing part of its approximately $950 billion Treasury General Account (TGA).
The first enhanced buyback operation is scheduled for September 9, giving the market a clear timeline to monitor.
Based on this timeline and the potential impact of Treasury buybacks on U.S. Treasury yields, we expect Gold could potentially approach the $5,104 zone around September 20, subject to market conditions.
$5,104 could also become an important turning point, where Gold may see a significant correction after completing the move.
For now, stay on the BUY side only and avoid aggressively taking short positions during this broader bullish move. $4,773 remains the next key target, followed by $5,104 if the bullish structure continues.
XAUUSD – Gold
Range: 4584$ – 4773$
Our Preference: Buy Gold @ 4605$ with back up buy 4590$ for target 4773$ with SL only below 4580$ if sustain
ZAIGZAG Point
4689$ Sell @ 1st stroke for jobbing
4710$+ Breakout Buy
XAGUSD – Silver
Our Preference: Buy Silver @ 67.71$ for target 69.80$ with SL 67.20$
Positional Buy will continue for target 74.80$ by add position @ 70.60$ + on breakout Buy
ZIGZAG Point
70$ Sell for session SL 70.50$
70.65$ Breakout Buy
66.28$ Last Buy for the Day
Silver Target 88$ on the same timeline
