The price of gold is trying to consolidate around the $1,220 level as the cloud of higher interest rates hovers above. Redemptions seen in the Gold ETFs overnight and open interest in the CME futures also seen declining in the past few days.
Silver is the only metal getting some support from the retail investor. Platinum traded briefly under the psychological $1,000 level overnight, lowest price since April 19th. Palladium trying to hold a key technical level at $ 530, a level not seen since March 3rd. I expect both these levels to be challenged today.
Some financial advisors report clients have been rotating out of metals and back into equities as the momentum shifts with better returns seen in the short term with dividend paying stocks.
As I indicated in my comment on Monday, with the threat of higher interest rates on the horizon, ( possibly June ) I expect to see a sell bias in the price of gold and unfortunately, I don’t see that changing anytime soon.
Have a wonderful Wednesday.
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