Gold Up on Week but Snaps 3-Day “Mini Rally”
12 September 2020, 04: 57
Gold prices ended up for the week but the “mini rally” of the past three days — which saw the yellow metal rise less than $10 daily on the average — came to an abrupt end Friday as volatility struck financial markets again in the absence of clear drivers.
From stocks on Wall Street to crude oil on NYMEX, prices either gyrated or see-sawed in a range as upbeat U.S. Consumer Price Index data was offset by the continued standoff in Congress over a new coronavirus relief bill.
U.S. gold for December delivery settled down $16.40, or 0.8%, at $1947.9 per ounce on New York’s Comex. It had risen over $27 in three previous sessions.
The spot price of gold, which reflects real-time trades in bullion, was at $1,942.80 by 3:56 PM ET (19:56 GMT), showing a decline of $3.38, or 0.2%.
For the week, though, December gold was up 0.7% while bullion showed a gain of 0.5%.
Notwithstanding that, gold remains way below Comex’s record highs of nearly $2,090 and bullion’s peak of above 2,073, both hit on Aug 7.
Charts show that spot gold needs to get to at least $1,968 to recover some of the frenetic momentum that took it to last month’s record highs. In Friday's session, it only got as high as 1,954.72.
“The market’s reaction to $1,968 will give guidance on the further course of action,” said gold chartist Sunil Kumar Dixit. “But gold actually needs to close above $1,973 and cross above $1,993 to resume the bullish momentum.”
“On the downside, breaking below $1,935 and a close below $1,920 will prompt it to attempt the $1,900 handle. Further weakness can increase the chances of a lower low that may reach $1,850-$1,800.”