INTL FCStone: Gold Gets Short-Covering Bounce
Gold has ticked higher as traders who previously took out short, or bearish, trades buy to offset or cover them, says Edward Meir, commodities consultant with INTL FCStone. As of 9:45 a.m. EDT, spot gold was $1.05 higher to $1,294.05 an ounce. “The precious metals group is higher right now, continuing a short-covering rally that set in over the course of yesterday's session after gold set a new 2018 low of $1281/ounce,” Meir says.
By Allen Sykora of Kitco News; email@example.com
FXTM: ‘Gold Could Be Doomed To Tumble Further’
Tuesday May 22, 2018 09:59
Gold got a lift Tuesday as the U.S. dollar retreated from five-month highs but could soon face renewed pressure, says Lukman Otunuga, research analyst at FXTM. “However, gains on the yellow metal remained limited by the improving risk appetite across financial markets,” the analyst says. “With easing tensions in the U.S.-China trade negotiations supporting risk sentiment and dollar strength currently a major market theme, Technically, gold has posted a weekly close below the $1,300-an-ounce prior support level, which confirms that bears remain in control, Otunuga says. “Taking a look at the technical picture, gold has scope to extend losses if bears can break below the $1,280 level,” the analyst continues. “Previous support around $1,300 could transform into a dynamic resistance that invites a decline towards $1,280 and potentially lower.”