Gold suffered its worst loss in over two weeks as profit taking ruled the day for the yellow metal as June futures settled at 1283.4 down . Recent inability to challenge 1300.0 an ounce basis June futures was most likely the culprit with weak longs taking profits. Despite a continued slide in equities, it wasn’t enough to stem the tide in gold as some daily technical indicators like the relative strength index show an overbought condition. More importantly, geo-political issues have seemed to abate some from last week’s saber rattling between North Korea, China, Russia and the United States.
Market watchers will also have a close eye on the first French Presidential elections this weekend and then secondary elections on May 7th. British Prime Minister Theresa May surprised some in the market for calling for snap general elections in June. The move is seen to strengthen her power and speed along the British exit from the European Union. The market will particularly be eyeing France with the potential election of the populist candidate there that could increase fears in the market of another major EU member leaving the Eurozone similarly to the Brexit.
Technical’s come in as follows for the remainder of the week for June futures. Support is down first at 1275.8, and then down at 1260.4. Resistance is up at 1303.3 and then up at 1318.2.