Gold is continuing to show little volatility with the price waiting for new market drivers. Bullion is languishing just below $1,490 and was unable to recover further, despite the weakening of the greenback. As said in previous comments, we are seeing a real challenge between the short-term scenario, marked by the relative strength of bears, and the medium-long term bullish trend, which has driven gold up by 15% YTD.
Photo by Avonlea Jewelry.
On base metals, there is a lot of attention on nickel, which is up more than 50% from the beginning of the year but collapsed by $825 in just a few minutes a couple of days ago, before continuing that bearish trend yesterday with a 5% loss. These are clear signals that some big investors are taking profits after the long rally. From a technical point of view, the price is now testing the first key support at $16,000-$16,250, while the next level to monitor will be $15,400-$15,500. On the flipside, a recovery to $17,000 would represent a first positive signal after the weakness seen in the last few days.
