By Barani Krishnan
From the stocks on Wall Street to crude oil on NYMEX, prices either gyrated or see-sawed in a range as upbeat U.S. Consumer Price Index data was offset by the continued standoff in Congress over a new coronavirus relief bill.
U.S. gold for December delivery 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 spot price of gold, 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.
“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.”