Gold Up on Week but Snaps 3-Day “Mini Rally”

Commodities & Futures
© Reuters. © Reuters.

By Barani Krishnan — Gold prices ended up for the week but the “mini rally” of the past three days — which saw the yellow metal rise less than $ 10 daily on the average — came to an abrupt end Friday as volatility struck financial markets again in the absence of clear drivers.

From on Wall Street to on NYMEX, prices either gyrated or see-sawed in a range as upbeat U.S. data was offset by the continued standoff in Congress over a new coronavirus relief bill.

settled down $ 16.40, or 0.8%, at  $ 1947.9 per ounce on New York’s Comex. It had risen over $ 27 in three previous sessions.

The , which reflects real-time trades in bullion, was at $ 1,942.80 by 3:56 PM ET (19:56 GMT), showing a decline of $ 3.38, or 0.2%.

For the week, though, December gold was up 0.7% while bullion showed a gain of 0.5%.

Notwithstanding that, gold remains way below Comex’s record highs of nearly $ 2,090 and bullion’s peak of above 2,073, both hit on Aug 7. 

Charts show that spot gold needs to get to at least $ 1,968 to recover some of the frenetic momentum that took it to last month’s record highs. In Friday’s session, it only got as high as 1,954.72.

“The market’s reaction to $ 1,968 will give guidance on the further course of action,” said gold chartist Sunil Kumar Dixit. “But gold actually needs to close above $ 1,973 and cross above $ 1,993 to resume the bullish momentum.”

“On the downside, breaking below $ 1,935 and a close below $ 1,920 will prompt it to attempt the $ 1,900 handle. Further weakness can increase the chances of a lower low that may reach $ 1,850-$ 1,800.”

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