Gold Dips Despite U.S. Protests as Wall Street Steals Shine

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© Reuters.

By Barani Krishnan 

.com – Logically, the street roiling America should help advance or least stay around the key $1,750 per ounce level. But when risk rallies defy logic, the need for safe havens just gets lost. 

U.S. gold futures for August settled down $16.30, or 1%, at $1,734 per ounce on Comex after a seventh day of protests across U.S. cities following the death of George Floyd. 

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The riots raise serious challenges for mayors and governors, particularly those in New York, who are trying to reopen their from a three-month shutdown forced by the Covid-19 pandemic. 

Spot gold, which tracks real-time trades in bullion, slid by $15.02, or 0.9%, to $1,724.98 by 2:32 PM ET (18:32 GMT).

But on rallied instead, with the Dow and S&P 500 hitting three-month peaks. 

“People know they need to be invested in the U.S. equity markets … but they also need that gold exposure because there’s so much uncertainty,” Michael Matousek, head trader at U.S. Global , told Reuters.

Analysts are at a loss over the immediate direction for gold, with as many appearing to bet that it will stay range-bound between $1,700 and $1,750, as there are those betting for a peak of $1,800.

Gold futures settled above $1,700 on Friday for the first time since November 2012, gaining 2.5% for all of May for a third-straight monthly gain.

Investing.com’s Daily Technical Outlook has a buy on Comex’s August gold, with a max upside of $1785.06. That leaves room for a gain of about $50, or 3%, in the near-term.

Source: Investing.com

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