Gold Price Rises Slightly After 3 Down Days

Gold prices went slightly higher today, after three down sessions. Comex gold rose $1.10, or 0.1%, to settle at $1,220.70 an ounce, after it had fallen almost $22 in the last two trading days.

The U.S. dollar fell 0.82%. The U.S. reported retail sales today, and figures showed a 0.8 percent drop while the median forecast of economists surveyed by Bloomberg called for a 0.4 percent decline, according to Bloomberg.

On the other hand, strength in U.S. equities did not help the yellow metal rising sharper, as investors were in a clear “risk on” mood today. That was largely driven by better than expected news in Europe where Greece seems to stay on “speaking terms” with its creditors.

From a chart perspective, gold is in a short term downtrend, after a very strong rise in January. As the chart below shows, GLD broke down on 29-Jan and extended its downtrend this week. The key question is whether gold will stop its retracement to resume its January uptrend. If not, and the yellow metal goes lower than the December lows, then a retest of the November 10th bottom is in the cards.



Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing