Gold closes lower, in a possible correction movement after rising last week

The most liquid gold futures contract closed this Wednesday, 8th, falling for the third consecutive session, in a possible correction movement after registering an increase last week and after falling below the support of US$ 2 thousand per troy ounce.

On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold scheduled for delivery in December closed down 0.80%, at US$ 1,957.80 per troy ounce.

Fawad Razaqzada, from City Index, assesses that, even with the fall in Treasury yields in recent days, gold has not recovered, probably because investors “have considered that stocks and bonds are better investment propositions than the precious metal, because it doesn’t pay dividends or interest and costs money to store.”

Furthermore, the analyst highlights that, as the commodity remains close to record high levels, gold traders must be waiting for a bigger drop to start purchasing the metal. Craig Erlam, from Oanda, assesses that “we may simply be witnessing a correction movement”.

On the other hand, Bannockburn warns that gold is close to its support level of US$1,950 per troy ounce, which could trigger the price to US$1,925 per troy ounce and, if the movement continues, to US$1,900 per troy ounce.