Gold slides lower again

Jun 25

In early trade this morning, gold and silver continued to take tentative steps upward following Friday’s nasty sell-off. Last week’s move really pulled the rug from under the bulls. They had been slowly rebuilding their confidence after an even nastier sell-off on 7th June. But the steady grind higher which followed the first slump evaporated in a single session. That’s quite a one-two to recover from, and it may take some time before the bulls are ready to push the boat out once again. The bulls were tested again soon after the open. Gold and silver sold off sharply in a move that saw silver break back below $29. There’s an extra wariness around the market currently, and a fear that another heavy tranche of selling could take prices back below $2,300, possibly triggering an avalanche of stops. But gold bulls are nothing if not resilient, while having to learn patience as well. Prices are still struggling to find a floor. But if they manage to recover this week, and assuming that Friday’s Core PCE number doesn’t upset the apple cart, then they’ll be hoping for higher prices through the summer and beyond.