Gold rises on bargain hunting, focus on US payrolls data

“Gold rose on Thursday as investors took advantage of the previous session’s steep price decline to buy the metal, with markets awaiting the release of Friday’s U.S. non-farm payrolls data for May.

Spot gold rose 0.9% to $1,713.37 per ounce. U.S. gold futures climbed 0.8% to $1,719.10.

“There are quite a few market participants still bargain-hunting gold given the fundamental backdrop of the coronavirus crisis and ongoing recession,” Julius Baer analyst Carsten Menke said.”

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KITCO/Neils Christensen

Gold price rises as ECB sees 8.7% decline in European economy in 2020

European Union Flag“The gold market is seeing renewed upward momentum Thursday after the European Central Bank increased its stimulus measures with the COVID-19 pandemic expected to significantly impact European growth.

Following its monetary policy meeting, the ECB said that it was increasing its emergency spending program by €600 billion to a total of €1,350 billion. The move comes as the ECB sees economic growth falling 8.7% this year, according to its latest economic projections.

“Incoming information confirms that the euro area economy is experiencing an unprecedented contraction,” said ECB President Christine Lagarde in her opening statement. “While survey data and real-time indicators for economic activity have shown some signs of a bottoming out alongside the gradual easing of the containment measures, the improvement has so far been tepid compared with the speed at which the indicators plummeted in the preceding two months.”

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MARKETWATCH/Myra P. Saefong and Mark DeCambre

Gold gets a boost from weakness in U.S. dollar and stocks, as traders parse ECB decision

man holding two gold bars“Gold futures rose on Thursday, with prices getting a boost from some weakness in the U.S. stock market and the dollar, as investors digested policy actions by the European Central Bank.

The ECB, as expected, boosted the size of its Pandemic Emergency Purchase Program on Thursday, saying the envelope for asset purchases was increased by €600 billion ($674.5 billion), to €1.35 trillion euros.

The PEPP is now set to run through at least the end of June 2021, versus the end of 2020, while maturing principal payments from assets purchased under the plan will be reinvested until at least the end of 2022, the ECB said.”

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FXEMIRE/Chris Vermeulen

Gold & Silver “Washout” – Get Ready For A Big Move Higher

Silver Futures Daily Chart“Gold and Silver moved lower early on June 2nd and 3rd.  Our research team believes this is a “Washout Low” price rotation following a technical pattern that will prompt a much higher rally in precious metals.  This type of washout price rotation is fairly common before very big moves after Pennant/Flag formations or just after reaching major price trigger levels.

With Gold, a sideways Pennant/Flag formation has been setting up near our GREEN Fibonacci Price Amplitude Resistance Arc.  We believe the downward price rotation recently is a perfect setup for skilled technical traders to take advantage of lower entry price levels.  The GREEN Fibonacci Price Amplitude Arc will very likely be breached over the next 5 to 10 trading days and the price of Gold should rally well above $1850 in the process.  We believe this Washout Rotation is a process of running through the Long Stops just below recent price activity that will end with a defined upside price rally over the next 2 to 5+ weeks.”

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