The strikes in South Africa depressed the price again. The South African Chamber’s offer was rejected by the Trade union at yesterday’s session.
Gold producers have tabled their final three-year offers for wage and benefit increases to representative unions, the Association of Mining and Construction Union (AMCU), the National Union of Mineworkers (NUM), Solidarity, and UASA.
The average retirement age of workers was extended to 63 years, with employees wishing to retire at 63 or before 63 entitled to do so.
According to Solidarity General Secretary Gideon du Plessis, the union would present the final offer to its members for consideration and would provide feedback by August 7.
The trade union Solidarity expressed its disappointment over the final offer tabled by the producers, stating that the proposed wage increases for skilled workers was lower than the mandate for settlement that Solidarity had obtained from its members.
On a monthly basis, gold fell 7.0% on the back of the Fed’s rate hike pending and a slowdown in the Chinese economy.
The yellow metal was trading at $1,088.30 during today’s Asian session. In the weekly chart, the metal managed to hold the channel support trendline at $1,085.00 on a closing basis. The metal has been reaching lower highs and lower lows breaking below the large bearish head & shoulder pattern.
The weekly support is found at $1,085.00, $1,077.00, and $1,073.00. A weekly close below $1,085.00 opens gates to $1,068.00 initially, and towards $1,045.00 and $1,005.00 later. In the monthly chart, strong support zone is seen between $1,045.00 and $1,032.00. The metal fell below a 14-year ascending trendline in the monthly chart. It has been managed to close above $1,085.00 on a daily closing basis for eight consecutive days.
A daily close below $1,085.00 opens gates to $1,077.00 initially, and $1,055.00 later.
Intraday: Intraday support is found at $1,085.00, $1082.00, and $1,077.00. Resistance is seen at $1,090.00, $1,093.00, and $1,095.00. A daily close below $1,085.00 opens gates to $1,077.00 and $1,055.00.
The metal has been reaching lower lows in the four-hour chart. At yesterday’s session, we recommend intraday selling below $1,090.00 with an initial target at $1,088.00. Selling accelerates below $1,085.00 towards $1,082.00, $1,080.00, and $1,077.00. The metal made a low at $1,082.00.
Panic is likely to be triggered below $1,077.00. Use a rise to sell. Buying is available above $1,095.00 with targets at $1,098.00 and $1,099.00.
Today’s trading pattern remains framed between $1,100.00 and $1,077.00
The material has been provided by InstaForex Company – www.instaforex.com