US Gold futures recovered from early losses as bargain hunters used a price dip as a buying opportunity Wednesday, and some aggressive shorting began to cover vs. the emerging safe-haven bid.
As of 1.21 p EDT, Aug Gold was up $14.30, or 0.93%, to 1,565.30 oz after earlier trading down to 1,532.10 on Comex division of the New York Merc earlier.
Some traders bought into the earlier price retreat, and those are not ready to be long in Gold, are likely questioning whether they want to be short.
Ultimately Gold is a safe haven play. I believe that trade will start to gain some traction at some point in here, especially the worse it gets in Europe. Stay tuned...
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.