Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Gold Poised for $1,900 Strike, Bucking Global Markets Selloff

CommoditiesMay 19, 2021 12:54PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Barani Krishnan - Gold bucked the global markets selloff triggered by China’s crypto-crackdown on Wednesday, advancing toward the key bullish level of $1,900 as risk-averse investors took cover in safe havens that included the yellow metal.

Like most commodities, gold took a hit earlier in the day after China marked a fresh crackdown on digital money by announcing tighter enforcement on the ban over financial institutions and payment companies from providing services related to cryptocurrencies.

But as New York trading of Comex began in earnest, gold turned around, recapturing the momentum it has held for more than two weeks now that took it from an intraday daily low of just under $1,782 on May 6 to a session high of just above $1,891 on Wednesday.

“I think we are poised to hit $1,900 before the weekend,” said Phil Streible, precious metals strategist at BlueLine Futures in Chicago.

“The sweet spot would actually be $1,920, which is where gold was before the January selloff that took it all the way down to the mid-$1,600 levels right through to the comeback we have today.”

Gold for June delivery on New York’s Comex was at $1,882.80 by 12:40 PM ET (16:40 GMT), up $14.85, or 0.8%. The session peak was $1,891.25.

The spot price of gold, reflective of real-time trades in bullion, was at $1,880.99 after an intraday high at $1,890.12.

Traders and fund managers sometimes decide on the direction for gold by looking at the spot price — which reflects bullion for prompt delivery — instead of futures.

Gold’s breakout began Sunday evening in New York as the Asian session for the new week went into play.

Even prior to that, longs in the yellow metal had an interesting couple of weeks amid arguments about runaway U.S. inflation after a raft of upbeat data on consumer and producerprices, industrial production and consumer confidence.

The Federal Reserve acknowledges the price pressures arising from bottlenecks in U.S. supply chains struggling to cope with demand in an economy reopening after months of pandemic-suppression.

But the central bank insists that these inflationary pressures are “transitory” and will fade as the economy makes a full recovery from the pandemic. It also says it does not see the need for now to raise interest rates.

Such an environment heightens gold’s natural role as an inflation hedge, say longs who are emboldened to attempt first a return to $1,900 levels last seen in January, before a further push to record highs of $2,000 set in August.

Tuesday’s breakout in gold came on the back of relatively-calm U.S. Treasury yields and the dollar that further enabled its upward momentum.

Yields tied to the 10-year Treasury note was down 0.3% at 1.637%.

The Dollar Index, which pits the greenback against the euro and five other major currencies, was up 0.2% at 89.89.

Gold Poised for $1,900 Strike, Bucking Global Markets Selloff

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Jack Drummond
Jack Drummond May 19, 2021 5:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No time for cheeky comments (from all of your readers) to your sensible writing. We're all celebrating down in the lobby bar. Come down and join us.
Barani Krishnan
Barani Krishnan May 19, 2021 5:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ha ha ... I wish, sir. I'm down south this week, traveling. Have a great one! :)
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email