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Gold’s Glitter Fades with 4th Weekly Loss, Plunge Below $1,800

Commodities May 13, 2022 02:07PM ET
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By Barani Krishnan

Investing.com -- All that glitters isn’t gold, is the saying.

Yet, the yellow metal itself is barely glittering these days.

In Friday’s session, gold plunged briefly beneath the key $1,800 level on New York’s Comex, accelerating a selloff that began in mid-April

Gold did recapture the $1,800 level after finding support in $1,700 territory. But the recovery wasn’t enough to undo the damage from earlier in the week that left it on the path to a fourth straight weekly loss that dinged roughly $165, or 8%, from its value since the week ended April 8.

Gold’s tumble on Friday, as in recent days, came on the back of a resurgent dollar, which scaled fresh 20-year highs.

The Dollar Index, which pits the U.S. currency against six other majors, did retreat to a session low of 104.5 after peaking at 105.05. While that helped gold retrace some of its losses, it barely impacted the directional charge in the dollar, which analysts expected to chart new two-decade highs in coming days on speculation over how hawkish the Federal Reserve could get with its next U.S. rate hike.

“Only a sudden U.S. dollar sell-off is likely to change the bearish technical outlook [of gold]," said Jeffrey Halley, who oversees Asia-Pacific markets’ research for online trading platform OANDA.

Front-month gold futures for June on Comex settled at $1,808.20 per ounce, down $16.40, or 1%, on the day. The session low was $1,797.45 — a bottom not seen since Jan. 30. Week-to-date, June gold was down 4%.

Despite Friday’s rebound from the lows, gold could return to $1,700 territory if it fails to clear a string of resistance from $1,832 to $1,836, $1,844 and $1,856, cautioned Sunil Kumar Dixit, chief technical strategist at skcharting.com.

“Since the current trend has turned bearish, sellers are very likely to come at the test of these resistance areas,” said Dixit, who uses the spot price of gold for his analysis.

“Decisive closing above the range can extend recovery to $1,880, failing which bearish pressures will push gold down to $1800 - $1780, and extend the decline to $1,760 in the week ahead,” added Dixit.

Gold’s Glitter Fades with 4th Weekly Loss, Plunge Below $1,800
 

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Comments (5)
John Sg
John Sg May 14, 2022 10:06AM ET
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Clueless writer
Sophal mam
Sophal mam May 13, 2022 10:49PM ET
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momsophal
Sophal mam
Sophal mam May 13, 2022 10:47PM ET
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momsophal
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Sophal mam May 13, 2022 10:47PM ET
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momsophal
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Sophal mam May 13, 2022 10:47PM ET
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ម៉មសុផល
Sophal mam
Sophal mam May 13, 2022 10:47PM ET
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ម៉មសុផល0719901902
Sophal mam
Sophal mam May 13, 2022 10:47PM ET
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ម៉មសុផល0719901902
Sophal mam
Sophal mam May 13, 2022 10:47PM ET
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ម៉មសុផល0719901902
rob bbbbbbbb
rob bbbbbbbb May 13, 2022 12:36PM ET
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This is simply illegal price manipulation.  I know of no individual that is not buying and holding.  A Congressional investigation should be done of course, but since we are living under Globalist Tyranny that is sadly unlikely.   Realty will set it at some point when even CBs will be scared enough to buy the only thing with any intrinsic value over history.  Stocks are the worst, followed by Crypto that we know is worth its weight in Gold.
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SunilKumar Dixit
SunilKumarDixit May 13, 2022 12:36PM ET
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Nuno Lou. The big whales may probably be waiting for levels below 1750 to cover shorts and fill their buckets for the next rally.
SunilKumar Dixit
SunilKumarDixit May 13, 2022 12:36PM ET
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Nuno Lou. The big whales may probably be waiting for levels below 1750 to cover shorts and fill their buckets for the next rally.
SunilKumar Dixit
SunilKumarDixit May 13, 2022 12:36PM ET
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Nuno Lou. The big whales may probably be waiting for levels below 1750 to cover shorts and fill their buckets for the next rally.
Barani Krishnan
Barani Krishnan May 13, 2022 12:36PM ET
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Nuno Lou  and Rob, I hear both of you and I agree totally: If there's one hedge now against inflation, it has to be gold. Unfortunately, the dollar has flown to the top of the safe-haven perch, hijacking the spot meant for gold, by virtue of the greenback's standing as the chief beneficiary of any U.S. rate hike.
Alan West
Alan West May 13, 2022 12:36PM ET
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If it’s being ‘manipulated’, why do you own it?
 
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