FXTM: gold left in 'firing line' despite 'market chaos'
Gold prices remain in the “firing line” after recent selling by traders looking to raise cash during across-the-board “market chaos,” said Lukman Otunuga, senior research analyst at FXTM. Comex April gold has tumbled from a March 9 high of $1,704.30 an ounce to a Monday low of $1,450.90. As of 7:39 a.m. EDT Tuesday, the contract was down $15.90 to $1,470.60 an ounce. “One would have expected gold to shine through the coronavirus-induced market chaos,” Otunuga said. “However, the complete opposite has been seen… Investors have clearly entered the trading week adopting a ‘sell-what-you-can mentality’ to cover steep losses in stocks, throwing gold directly into the firing line.” Technically, gold is now bearish on a daily chart, Otunuga said.