INTL FCStone: Gold Gets Short-Covering Bounce
Gold has ticked higher as traders who previously took outshort, 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 rightnow, continuing a short-covering rally that set in over the course ofyesterday's session after gold set a new 2018 low of $1281/ounce,” Meir says.
By Allen Sykoraof Kitco News; asykora@kitco.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 fromfive-month highs but could soon face renewed pressure, says Lukman Otunuga, researchanalyst at FXTM. “However, gains on the yellow metal remainedlimited by the improving risk appetite across financial markets,” the analystsays. “With easing tensions in the U.S.-China trade negotiations supportingrisk 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 atthe technical picture, gold has scope to extend losses if bears can break belowthe $1,280 level,” the analyst continues. “Previous support around $1,300 couldtransform into a dynamic resistance that invites a decline towards $1,280 andpotentially lower.”
By Allen SykoraFor Kitco News
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