Gold futures staged a dynamic recovery today. After trading to an intraday low this morning of $1684.20, selling diminished and buying was revitalized, taking gold pricing well above $1700 per ounce. The low today was $0.80 above its 50-day moving average which currently is fixed at $1683.30. As of 4:22 PM EST gold futures basis the June 2020 Comex contract is trading at $1711.70 (+0.37%).

Gold futures basis the June 2020 Comex contract closed down $30.50 (-1.76%), and is currently fixed at $1705.10. The June contract traded to a low of $1700 before recovering slightly. At the same time spot gold is currently trading down $17.30 and fixed at $1710.30.

It seems highly probable that North America, as well as globally that new cases of the virus will begin to diminish day by day, week by week. Globally the data suggests that the world has hit the peak of new cases of Covid – 19.

After trading higher for six of the last seven trading days, gold futures closed sharply lower on the day. After trading to a low today of $1715.30, gold recovered approximately 1/3 of today’s drawdown and is currently fixed at $1726.70 (-1.45%), ending up with a loss $25.40.

The hard truth remains, economic stimulus continues to be needed as both the Federal Reserve through their monetary policy, and the U.S. Treasury through fiscal policies has ballooned, and more stimulus will likely will be needed.

Both Treasury Secretary Stephen Mnuchin, and Federal Reserve Chairman Jerome Powell spoke to the Senate Banking Committee today. The primary purpose of the meeting was for the Senate Banking Committee to get the latest evaluation of the global pandemic that has greatly affected the United States economy.

If not for dollar weakness today’s selloff in gold futures would have been much more severe. The dollar index is currently down approximately 0.80%, and fixed at 99.62. As of 5:08 PM EST Gold futures basis the most active June contract is currently down $22.20, and fixed at $1734.10.

It was inevitable. The global pandemic which is now in its third month has had a devastating effect on economies worldwide. The commonality is that all major countries have experienced economic contraction. The variable between some countries is how they are experiencing much harsher economic contractions than others.

In Last few weeks we have identified a simple Western technical indicator known as a pennant formation, and commonly referred to as a compression triangle. It is called a compression triangle because price ranges as well as the highs and the lows of a period of time will begin to contract.

In Last few weeks we have identified a simple Western technical indicator known as a pennant formation, and commonly referred to as a compression triangle. It is called a compression triangle because price ranges as well as the highs and the lows of a period of time will begin to contract.