Gold prices ended the U.S. day session up and hit a four-week high Monday. Safe haven demand was featured amid growing concerns about the U.K. vote next week regarding an exit from the European Union (Brexit). August Comex gold was last up $11.10 an ounce at $1,287.00. July Comex silver was last up $0.115 at $17.445 an ounce.
Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 2.37 tonnes to 896.29 tonnes on Monday, the highest since October, 2013.
Traders and investors are looking forward to this week’s meeting of the Federal Reserve’s Open Market Committee (FOMC). There is not a clear consensus on whether the Fed will raise interest rates at this meeting. However, the recent very weak U.S. jobs report for May has many market watchers speculating the Fed will not make a rate hike in June.
According to the CMEGroup' s Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 3 percent for the June meeting, 18 percent at the July 2016 meeting, and 33 percent at the September 2016 meeting.
Technically, August gold futures prices closed nearer the session high and hit a four-week high today. The gold bulls have the solid overall near-term technical advantage and have upside momentum. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the May high of $1,308.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,236.90. First resistance is seen at today’s high of $1,290.30 and then at $1,300.00. First support is seen at $1,280.00 and then at today’s low of $1,275.20. Wyckoff’s Market Rating: 7.5
Reference: Kitoc, Xinhua
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