Today Tuesday, 28th September 2021
Finance and Fitness Today

Your latest news, ideas, strategies. Keep up to date with all the latest information.

Heath Tips

  • In enim justo, rhoncus ut, imperdiet a
  • Fringilla vel, aliquet nec, vulputateDonec pede justo,  eget, arcu. In enim justo, rhoncus ut, imperdiet a, venenatis vitae, justo.Nullam dictum felis eu pede mollis pretium.

Recent posts

Gold Struggles to Regain Mojo Despite Continued Meltdown in Stocks

Gold Struggles to Regain Mojo Despite Continued Meltdown in Stocks
imageCommodities5 hours ago (Feb 27, 2020 03:41PM ET)

(C) Reuters.

By Barani Krishnan – Gold prices were little changed a second day in a row on Thursday as profit-taking prevented the yellow metal from regaining the momentum that took it to seven-year highs this week, despite Wall Street’s continued meltdown.

Gold futures for April delivery on New York’s COMEX settled down just 60 cents at $1,642.50 per ounce.

Spot gold, which tracks live trades in bullion, was up $1.20, or 0.1%, at $1,640.78 per ounce by 2:50 PM ET (17:50 GMT).

On Wall Street, the three major stock indexes lost about 3% each, tumbling for a sixth-straight day. Goldman Sachs (NYSE:GS) said U.S. companies were unlikely to generate earnings growth in 2020 due to the impact of the coronavirus.

With Wall Street’s continued carnage, some analysts were surprised by the sudden loss of mojo in gold, which so far seemed the best hedge for the crisis.

“Gold is only modestly higher as the latest run of outbreak fears was met with profit-taking,” Ed Moya, analyst at New York’s OANDA, said in a note on Thursday, noting that a record long streak of buying in gold ETFs had also come to an end.

Despite the pause, many expect the yellow metal to regain the steam that took it to seven-year highs of nearly $1,700 an ounce on Monday.

“Gold will be bolstered by pandemic fears, central bank and government stimulus, trade angst, and political uncertainty,” Moya added. “Gold will eye the $1,700 an ounce level over the next couple weeks as the coronavirus outbreak worsens.”

TD Securities said there was a pullback across the board in precious metals, noting that silver, platinum and palladium were all under pressure.

“Gold also remains at risk of consolidation, as the bullish narrative has reached widespread consensus, with more traders long than ever, each of whom holds an outsized position, leaving nearly no traders left short,” it said.

“However, we do not expect systematic trend followers to liquidate their gold length any time soon, as algos remain well positioned for the uber-bullish momentum signals.”

Many also expect gold to chart new highs amid bets that the Federal Reserve will be forced into another round of protective rate cuts to protect the U.S. economy from the effects of the coronavirus. The Fed just ended an easing cycle in December after cutting rates back-to-back in three months.

Gold Struggles to Regain Mojo Despite Continued Meltdown in Stocks

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 markets, it is one of the riskiest investment forms possible.

Related Posts

Read also x