Gold Price News and Analysis
- Gold's outlook remains negative as US yields inch higher.
- Little in the way of technical or fundamental drivers.
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The latest IG Retail Sentiment Indicator shows that traders are 80.4% net-long of the precious metal and recent positional changes give us a stronger contrarian bearish bias .
Gold Price Respecting the Downtrend
Gold continues to drift lower, with the downtrend from the April 11 high still in control. Markets are opening the week with a mild risk-on tone as concerns over EU political unrest take a back seat for the time being. Italian and Spanish bond yields - an indicator of risk - are both drifting lower while US Treasury yields push higher ahead of next weeks expected 0.25% US interest rate hike. Friday's strong US employment and wages growth continue to point to a strong US economy and potentially two further rate hikes this year, making a total of four or 1%. This week's G7 meeting may deliver some volatility in the shape of trade war rhetoric.
The May 21 low at $1,282/oz. remains the target on the downside with last Friday's low around $1,289/oz. the first level of support. On the upside a break and close above the downtrend channel around $1,298/oz. would open the way for the recent double tops around $1,308/oz.
Gold Spot Price Chart Daily Time Frame (December 2017 - June 4, 2018)
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--- Written by Nick Cawley , Analyst
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