In July 2021, gold appreciated 2.5% on average, silver declined 2.5% on average, depending on the currency.
The month started with a strengthening of precious metals prices. This was supported by information about the spread of the delta variant of Covid-19. It can motivate central banks to keep a super-soft monetary policy.
Main events affecting the precious metals market
US and Canadian employment figures were released. In the US, the unemployment rate was 5.9%. It is worse than the previous one — 5.8%. This rate also didn’t meet experts’ expectations who had expected its decrease of 5.7%. But data on change in employment in non-agricultural sectors of the economy showed an 850, 000 increase compared to 586,000 a month earlier.
Market participants paid attention to the publication of the FED’s minutes of the meeting. The pace in combating Covid-10, its spread, unemployment, and inflation are the focus of priority attention. The majority of the committee members consider the rise in inflation to be temporary, and after the sharp increases, it will be suspended.
Consumer price level data in the United States were released. Due to super-soft monetary policies, there is a risk of acceleration of inflation. In the United States, the annual value reached 5.4%, which is considerably higher than the 5% in the previous month. Despite the increase, experts believe that for the FED, it will not be the most important factor for the faster rate hikes.
The FED’s decision on monetary policy was released. Following the announcement of the decision to maintain the current levels, a press conference was held where FED Chair Jerome Powell said that rates should be maintained at current levels until the economy full recovery.
XAU / USD (+ 2.53% in July)
Bullion deals https://www.pacificpreciousmetals.com/bullion-deals in July didn’t reach major changes, the important level remains $1680/oz. If this mark is passed, further correction of the precious metal is possible.
- Local support levels are $1755/oz.
- Resistance levels are at $1793/oz and $1831/oz.
- More significant levels are within $1907/oz, $1960/oz, and $2065/oz.
XAU / EUR (+ 2.42 in July)
Gold in Euro shows a similar situation as on the chart with the dollar. After a long increase amid the pandemic and slowdown in the world economy, precious metals are correcting at the first hint of an accelerated recovery.
- Support levels are at €1487/oz and €1417/oz.
- With a deeper correction — €1380/oz.
- Resistance levels are at €1595/oz and €1647/oz.
XAG / USD (-2.41% in July)
Silver keeps its ranges and is approaching its lower bound.
- Resistance levels are at $28.20-29.00/oz.
- Support levels are at $22.50/oz, $20.20/oz, and $18.50/oz.
XAG / EUR (-2.54% in July)
After narrowing trading ranges, the silver in Euro has dropped, but the risks related to new variants of Covid-19 support low-risk assets.
- Support levels are €18.90/oz, €18.30/oz, and €17.50/oz.
- Resistance levels are at €24.00-24.75/oz.