Gold futures in the June contract settled last Friday in New York at 1,654 while currently trading at 1,637 an ounce down about $17 for the week still experiencing high volatility daily.
Gold prices remain firm because we have lost about 10 million jobs in the United States of the last two weeks as the unemployment rate has jumped to 4.4%. However, it's pretty much over 10% at the current time as we will wait for next month's monthly unemployment number to confirm that as that should be supportive gold prices as a worldwide slowdown is at hand. Gold prices are trading above their 20 and 100-day moving average as the trend is to the upside. However, the $1,700 level has acted like cement and has not been able to penetrate it on a closing basis, as that is where the true breakout will occur, in my opinion.
The volatility at the current time is exceptionally high. I don't think that situation is going to change anytime soon as all commodity and stock markets are experiencing substantial daily price swings. The Coronavirus has certainly thrown a wrench into the closet as I'm sitting on the sidelines waiting for a better a chart pattern to develop as the risk/reward is not in your favor to take a bearish or bullish position at this time.
TREND: MIXED - HIGHER
CHART STRUCTURE: IMPROVING
Silver futures in the May contract is currently trading at 14.54 an ounce after settling last Friday in New York at 14.53 up slightly for the trading week as prices are right near a 3 week high as prices bottomed out on March 18th at 11.15.
We are keeping a close eye on the U.S economy, which has come to a standstill as the unemployment rate is going Continue reading "Gold Futures Eye Breakout"