Inflation & Initial Claims Data Today! Levels to Watch

Metals Minute

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Discover insider insights on your favorite Precious Metals, uncover overnight developments, and gain expert analysis on what to watch for every trading day.

After Jerome Powell’s two-day testimony, swaps continue to price in a 73% chance that the Fed will make its first interest rate cut at the September 18th meeting. Fed Chair Jerome Powell told lawmakers on Wednesday that while he believes inflation is receding, he isn’t yet confident it’s sustainably slowing toward the central bank’s goal.

Today at 7:30 we will get the latest reading on CPI and Initial Claims

US inflation is expected to have moderated in June, forecasting a 3.1% annual pace, the slowest in five months.

Ahead of the data , S&P 500 futures pulled back a day after the index’s longest winning streak in eight months. Treasuries are unchanged, awaiting the report.

Focusing on the Precious Metals, we believe the rally is likely to continue through the end of 2024, as optimism about US interest rate cuts act as a tailwind.We will keep a close eye on initial claims data as well today with expectations of 236,000 claims filed as wage growth and US highering cooling.

We expect Central Bank buying to continue, while China has paused their purchases, Central Banks such as Poland, Turkey and India continue to add to reserves. India added 9 tonnes in June and has expanded to 37 tonnes this year bringing they total holdings to 841 tonnes.

Levels to watch

Silver – continues to maintain its bullish trend

  • Support July 5 low of 30.45
    • Followed by 50 DMA at 30.02
    • The line in the sand rises to 29.35

Gold – Awaiting a Breakout above 2398 to flip to a bullish trend

  • Support 50 DMA at 2362
  • Second support 2356 July 5 low
  • The line in the sand 2324.

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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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