Gold catches its breath after longest win streak in two months
London (Apr 13) Gold futures dropped Wednesday, taking a break after notching their longest string of gains in two months.
June gold GCM6, -1.38% fell $10.90, or 0.9%, to $1,250 an ounce, while May silver SIK6, -0.91% declined by 10 cents, or 0.6%, to $16.13 an ounce.
Safety plays like gold were getting hit, as riskier assets like European stocks SXXP, +2.04% and U.S. stock futures ESM6, +0.57% stepped higher.
Analysts are fretting about a possible bearish chart pattern that the metal is etching after pulling back from its session high on Tuesday.
“Gold looked great driving up toward $1,264, but its failure there and retreat back toward $1,254 looks ominous, as it appears to have completed the right shoulder of a head and shoulders top,” said Colin Cieszynski, chief market strategist at CMC Markets, in a note.