Gold faced gains as crude oil plummeted

Gold faced gains as crude oil plummeted

Gold prices saw some gains in early US trading Monday. The yellow metal still has a firmly bullish technical posture. June futures for gold

Crude oil prices dropped sharply. Gold prices may have seen some additional haven buying interest. Precious metals have become the focus of attention for traders and researchers recently. Bank of America raised its target for gold to $3000.

Deal of OPEC and its allies did not influence prices

Trading week started with a drop of Nymex crude prices over $4.00 a barrel at $12.65. Analysts speculate that Nymex prices will turn negative again. They anticipate it in late May when the June contract nears expiration.

In the inundated world market, no place remains to store oil. Because of the Coronavirus outbreak, the world market is seeing severe demand shock.

News that OPEC will start oil production cuts had no positive influence on prices.

The US and some other countries are starting to reopen from the Coronavirus induced lockdown. Still, social-distancing restrictions will likely remain in effect all summer, according to leading US health officials.

Central banks’ meeting will be held this week, including the Federal Reserve and the European Central Bank.

The US dollar index lowered solidly. This morning, the ten-year US Treasury note yield is trading around 0.625 %.

Technically, the gold bulls have a substantial overall near-term technical advantage and have gained more power late this week. Their next upside price goal is to produce a close in June futures above significant resistance at $1,800.00. Bears’ next near-term downside price goal is pushing futures prices below reliable technical support at this week’s low of $1,666.20. First resistance is observed at the overnight high of $1,745.80 and then at $1,750.00. First support is observed at $1,725.00 and then at $1,718.00.

May silver futures gained a slight near-term technical advantage.

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