Gold Snaps 10-Day Rally After Analysts Warn of Reversal

0
19

© Reuters.

.com – Gold fell for the first time in 11 sessions on Tuesday, halting its ponderous run toward the $1,700 level after analysts’ cautioned that the rally spurred by fears over the contagion could reverse.

on New York’s COMEX settled down $26.60, or 1.6%, at $1,650 per ounce. Just on Monday, the hit a seven-year high of $1,651.85.

, which tracks live trades in bullion, was down $9.99, or 0.6%, at $1,650.43 by 3:30 PM ET (20:30 GMT). Bullion struck $1,689 in the previous session, its highest since January 2013.

Article continues below Advertisement...

Tuesday’s slide in gold came a day after analysts at TD Securities noted that longs in the yellow had entered new territory of “dry-powder positioning”, which it said was “off the charts” and could trigger a market reversal.

Still, it was rare for gold to slump along with stocks on , which were headed for another major down day following Monday’s worst one-day crash in two years on the and .

Stocks fell as the U.S. Centers for Disease Control and Prevention said a spread of Covid-19 in the U.S. was “inevitable” and warned Americans to prepare for disruptions in their daily lives, leading to another mass selling of stocks and buying of bonds.

But some viewed the drop in gold positively.

“Just like in most bullish , pullbacks are healthy and today’s slide towards $1,650 an ounce could be viewed as a buying opportunity,” said Ed Moya, analyst at New York-based OANDA. “If the $1,650 an ounce level holds, gold may not struggle too much to break the $1,700 an ounce level.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial , it is one of the riskiest investment forms possible.

Source: Investing.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here