Gold Going Sideways Along $1,700 Mark
Sunshine Profits | May 07, 2020 08:25AM ET
The gold futures contract lost 1.29% on Wednesday as it retraced most of the short-term rebound from last Friday's daily low of $1,675. Gold is still trading within a relatively flat correction following April's advance. On April 14 it was the highest since November of 2012 and the high was at $1,788.80. Since then we've seen some profit-taking action and a potential downward reversal.
The price of gold is basically going sideways along $1,700 mark since early to mid April and it's trading above February-March local highs. So it still looks like a consolidation within a medium-term uptrend
This morning, gold is gaining 0.7% as it is getting back closer to $1,700 price level again. Global financial markets remain in a risk-on mode, as stocks hover along their medium-term local highs. And the other precious metals generally follow gold's advance today: Silver lost 0.63% yesterday and today it is trading 1.8% higher. Platinum lost 2.45% on Wednesday and today it is unchanged. Palladium gained 0.14% yesterday and this morning it is up 0.8%.
Yesterday's ADP Non-Farm Employment Change number was at around -20 million, as it confirmed the recent weekly Unemployment Claims releases.
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