Gold unable to find support in any way

Gold futures declined in price during both Asian trading and the European session today.

On a trading floor in New York, the value of August gold futures on the last business day of the week fell by 1.11%, which sent the precious metal to the level of $ 1,708.30 per troy ounce. Support at the same time was at around 1,690.30 dollars per troy ounce, and resistance was recorded in the region of 1,761 dollars per troy ounce.

Buyers in the gold market, of course, know that going against the Fed’s policies is very difficult. It is especially difficult at the moment when the regulator begins to literally bring down a huge amount of money to the market in the form of loans, grants, targeted support, etc, in order to save the drowning economy. In another scenario, all these trillions could go to purchase a more reliable and time-tested asset – gold.

For the precious metals market, there are two options for the development of events with such an avalanche of money. Firstly, you can ride it and ride well, which would be reflected in the rise in the price of gold to the desired 1800 or even higher – up to 1900 dollars per troy ounce. According to the second option, the money wave covers the market, which will inevitably die, losing all chances of survival. In this situation, gold would begin to rapidly reduce its value.

It would seem that the precious metal is about to find itself at the peak of a snow wave, but then a rival appears – the stock market, which, of course, does not want to share the victory with gold.

In this struggle for liquidity, the precious metals market is holding far worse than stock indices. Even the traditional rival of gold – a strong dollar – no longer exerts such serious pressure. As it became clear, every successful day in the stock market certainly turned out to be a doubly unlucky day for the precious metals market. And this correlation will continue.

Today, the futures for silver for July delivery reduced their value by 1.18% and went to the level of 17.848 dollars per troy ounce. Copper futures showed the opposite movement which became more expensive at 1.63% and took a position at 2,530 dollars per pound.

Source: Gold unable to find support in any way

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