Morning Snapshot: Gold firms to pressure $1300 once again

USAGOLD/Peter Grant/08-28-17

Gold jumped in overseas trading to pressure the important 1300.00 level once again. Mew highs for the year above 1300.98 would shift attention to the 1375.15 high from last year.

The yellow metal is being driven by a weak dollar, after Janet Yellen disappointed policy hawks on Friday by not addressing that topic specifically. That leaves the dovishness of the July FOMC minutes as the last official word on policy from the Fed.

Ms. Yellen also warned about excessive optimism and leverage in the market. Mario Draghi piled on with his own warnings about the threat of protectionism derailing the global economy.

With political and geopolitical risks mounting, look for safe-haven demand for gold to persist. Major support in the dollar index is close at hand at 91.92. If this level gives way, there is very little additional support for quite a ways. At that point, gold could really run.

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