Gold’s technicals continue to deteriorate

New York (May 20)  Gold has edged down to fresh lows for the year and is below the major moving averages, pointed out INTL FCStone.

 Comex June gold bottomed at $1,284 an ounce, its weakest level since December. The [precious-metals] complex held up yesterday because of the uncertainty with regard to the North Korean situation, but funds are apparently not that interested to stay long in a prolonged news vacuum, INTL FCStone added.

 Meanwhile, gold’s technicals continue to deteriorate as moving averages are turning bearish.

 June gold rose $1.90, or nearly 0.2%, to settle at $1,291.30 an ounce. The contract’s Thursday settlement at $1,289.40 marked a nadir for a most-active contract since late December.

 Prices, which climbed modestly last week after three straight weekly falls, finished down 2.2% from last Friday’s finish, the worst weekly tumble for the commodity since the period ended Dec.8, 2017, when gold fell 2.6% for the week.

 This took the market below the most widely followed moving averages: the 10-day at $1,308, the 20-day at $1,314.10, the 50-day at $1,328.40, the 100-day at $1,331 and the 200-day at $1,315.70.

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