Gold's price surge on Wednesday validates its name as a safe haven bet on anticipation of a monetary stimulus seen to bolster major economies around the world.
Prices of the precious metal and silver are moderately higher during early trading in New York, Wednesday. Yellow metal bulls are relishing very positive price monitoring that continues to lure in traders to the long stretch of the markets, gold futures for August last rising $5.80 per ounce at 1,427.51.
Silver prices on Comex for September projection were the last rallying $0.129 at $16.60 per ounce.
Spot gold advanced 0.41% at $1,422.06 per ounce but still could not sustain last week's gains at $1,452.61. Gold futures in the U.S. were up $1.90 to $1,423.61.
Fundamentally, gold bulls still hinge on a solid overall near-term technical edge. A 2-month-old uptrend is in motion on the daily chart. the bulls' next price goal is to come up with a close in next month's futures above solid resistance at $1,500.00.
The bears' next downside near-term price breakout aim is to push August futures prices under solid technical support at $1,400.00.
On the other hand, bulls for September silver futures have a strong overall near-term fundamental edge. Their next upside price breakout target is to wrap up prices above solid technical resistance at $17.00 per ounce.
According to Reuters technical analyst Wang Tao, spot gold looked neutral in a tight range of $1,412-$1,427 and a breakout could indicate a direction.
Consistent strong investment interest and purchase in the precious metal, estimates of cuts in interest rates, rising geopolitical tensions regarding Iran and a dreary world economic forecast are lifting prices gold today, Commerzbank analyst Carsten Fritsch disclosed.
Meanwhile, the European Central Bank (ECB) is seen to announce easier finance policy in a meeting with top economic officials on Thursday. Investors are also bracing for the U.S. Federal Reserve's policy meeting set July 30-31, at which it is estimated to ease its overnight benchmark lending rate.
In other news, U.S. investors and traders are still mostly optimistic on news Washington and China have restarted their stalled economic discussion, with U.S. business diplomats traveling to China next week for a new round of negotiations.
Concerns regarding sluggish economic growth have prompted major global banks to reconsider their stance on monetary policy. The IMF on Tuesday eased its projections for global growth and next, warning that more U.S.-China tariffs or a disorderly Brexit could affect growth, drag down investments and disrupt supply chains.
