Gold gives up yesterday’s gains then some
Gold gave up yesterday’s gains in early trading and then some. At the moment, it is trading at $1338 and down almost $15 on the day. Silver is similarly trading to the downside at $16.50 and down 19¢ on the day. Gold pushed over the technically important $1360 mark to trade briefly at the $1365 level yesterday. That price level met with a wave of selling in the paper gold market that carried over to early trading today. On the opposite side of the ledger, the dollar regained much of the ground it lost in yesterday’s trading. Both are caught in narrow channels that have developed over the early part of 2018.
The volatility in paper gold market day to day, accompanied by strong buying or selling volume on either side of the trade, indicates indecision on the part of speculators and investors as to which way the gold market is likely to break. That lack of conviction has kept the price in a channel between just over $1300 per ounce and just under $1360. A major geopolitical or financial market event though could break the price channel.
In the meanwhile, long-term physical owners of the metal have enjoyed a 6% gain in gold over the past 12 months, as reflected in today’s Chart of the Day: