COM: Range bound gold turns back on profit taking as oil falls
By Allen Sykora
Gold futures fell Friday morning along with weakness in crude oil, says Frank Lesh, broker and futures analyst with FuturePath Trading. As of 9:15 a.m. EDT, Comex August gold was $15 lower at $1,527.70 an ounce, when Nymex July crude oil was $1.70 a barrel softer at $100.23.
“It’s more or less crude oil pulling down the gold today,” says Lesh, adding that overnight Chinese economic data was not favorable for commodities generally.
Gold remains range-bound, having trouble breaking above $1,550 on a sustainable basis as profit-taking emerges, Lesh says. “We buy the dips and look for it to move higher and run into resistance around $1,550,” he says.
“It doesn’t go through so what do you do? You take your money.” Lesh lists support for August gold around $1,524, $1,517, $1,506 and in the $1,490s.
