The price of an ounce of gold remains underpinned near $1570 following yesterday’s market sell off on stock markets which continue in negative territory this afternoon, with most major markets still in the red.
Latest Gold Price
Spot gold was down 0.2 percent at $1,573.40 an ounce at 12:00 GMT, while US gold futures for August delivery were down $3.80 an ounce at $1,573.60.
Gold prices hit a ten day low on Monday but stayed within the $75 range in which it has traded this month, holding up better than some other commodities like copper and crude oil, as chart support arrested its decline above $1,560 an ounce.
“Markets sold off really heavily yesterday, and gold held up pretty well against that. It is maybe the one thing that has really stayed solid against some pretty solid headwinds elsewhere,” Macquarie analyst Hayden Atkins said.
Analysts who study past price patterns to determine the future direction of trade said gold’s consolidation is showing signs of ending in correction. Commerzbank said in a note that it expects the major $1,532/1,522 support area, which held in September and December, to give way over the summer.
“The metal continues to move deeper and deeper into a consolidation triangle,” ScotiaMocatta said in a note, meanwhile. “Current parameters currently lie at $1,560 and $1,611.”
“We would expect fresh selling now below $1,548 and fresh buying above $1,623 as the market tries to play the breakout, it added. “Big picture, triangles tend to be continuation formations, so bias would be a break lower from the $1,790 to $1,528 March-May drop.”
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Price of gold remains underpinned after yesterday’s market sell off
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