Gold, lower by $2.10 at $1,519.10, failed to bounce early Friday morning following yesterday’s steep $27.90 decline. Trading was relatively light following the heavy liquidation in COMEX gold futures that occurred yesterday as sell stop after sell stop was triggered. Gold’s sister precious metal, silver, sank $0.59 to $34.72 per ounce this morning. Silver prices have fallen 3.2% this week. Strength in the U.S. dollar helped pressure precious metals.
Despite yesterday’s violent sell-off, the ScotiaMocatta Precious Metals Research team remains bullish on gold. The firm highlighted $1,504 per ounce as a key level for the yellow metal, commenting in a noted to clients:
“Gold has taken a nasty turn lower today to current 1516. Yesterday’s high of 1558 appears to be a failure ahead of 1577 record high. The metal has broken a three month rising trend line support at 1526. Critical support is seen at June low 1511 and previous weekly low of 1504. We are bullish Gold while the metal holds above 1504, but see a break of 1500 yielding 1463.”
S&P 500 stock futures traded near unchanged, up 0.50 at 1277.50.
