Gold futures on Monday traded modestly higher as the precious metal attempted to halt a two-session slide that has come as assets perceived as risky have rallied, dulling its appeal.
However, some commodity experts remain bullish and point to its trade above the $1,500-an-ounce mark as the demarcation line between bullish and bearish momentum in the commodity.
December gold GCZ19, +0.13% gained $6, or 0.4%, to trade at $1,521.50 an ounce, after notching the most-active contract fell about 0.9%, for the week, according to FactSet data.
Silver for December delivery SIZ19, +0.23%, meanwhile, shed a penny, or 0.4%, to $18.30 an ounce, following a 1.2% slump for the week for gold’s sister metal.
“The main trend remains positive, even though prices are now playing with the psychological level of $1,500 and there could be space for a further correction to around $1,475, without affecting the main bullish trend,” wrote Carlo Alberto De Casa, chief analyst at brokerage ActivTrades, in a daily research note.
As for silver, which had enjoyed a powerful uptrend, up more than 11% last month — outperforming gold’s monthly rally last month, up 6.4% — De Casa says its gains may have come too quickly and expects that prices for the gray metal “are likely to consolidate around these levels, before any further rebound attempt.”
Gold and silver have been supported by worries about anemic economic growth internationally and concerns that, combined with a Sino-American trade war, sluggish expansion may wash up on U.S. shores. On top of that, bond yields globally have offered rates that are ultralow or less than 0%, which also has bolstered appetite for precious metals which don’t bear a yield.
Prices for gold have climbed 18.8% so far this year, while those for silver are up 17.7% over the same period. By