Global equities tumbled today but the risk off sentiment didn’t carry over to gold. The yellow metal bucked the trend and instead made modest gains on the day. Volume on the Comex electronic exchange for the active December contract was light at 90,000 lots traded and reflected summer trading conditions. After a big drop in mid-July, gold has spent the last three weeks consolidating in a new trading range. Bids have lifted the market as it approaches $1,080 on the downside while sellers have firmly entrenched $1,100 as resistance. Physical coin and bar demand in the US remains strong but Asian demand for kilos isn’t noteworthy. Silver has fallen into the same pattern as gold and has spent the last few weeks consolidating between $14.40 – $15.00. US Non-Farm Employment figures have the potential to rattle the markets tomorrow but it feels like it’s going to be a quiet end to the week.
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