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Gold price drops back from record and silver drifts sideways, while counter-trend bounce in Brent crude price goes on
Gold has dropped sharply, while the rebound in crude oil prices continues.
Gold drops from record high
While the spot gold price hit a new record high yesterday at $3500.00, it then reversed on comments from the US Treasury Secretary that gave hope of a deal with China, and then dropped further as president Trump signalled that he had no intention of firing Fed chairman Jerome Powell.
This might mark the start of a real pullback for gold, with the first target being the highs from early April at $3167.00. Below this comes the April low at $2970.00.
Silver contained in tight range
Spot silver gains over the past week have stalled at $33.00, though we have also seen support emerge at $32.00. Given the comments overnight, we may see a test of $32.00 again as silver takes its cue from gold.
A daily close beneath this would open the way to $31.00, the late February low. Alternately, a close above $33.00 could trigger a move towards the March highs.
Brent crude keeps moving higher
Crude oil continues to climb, with Brent crude oil making its way back towards the $69.00 lows from early March. This is still a counter-trend bounce given the ongoing downtrend from January, though if the price can recover $70.00 a move to the highs of early April at $75.00 seems likely.
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