Gold consolidates

2월 27일

Gold is a touch firmer this morning, making back yesterday’s losses. It continues to consolidate in a relatively narrow range with a modest upside bias. This has seen it recover from a sharp sell-off two weeks ago when it slumped below $2,000 for the first time since mid-December. Over the last ten weeks, gold has spent most of its time between $2,000 and $2,100. This contrasts with the first few days of December when it soared to an all-time high around $2,146 before collapsing to $1,973 ten days later. Things have certainly quietened down since then, but now we’ll see if the current consolidation is a precursor to another big move. Silver is a touch higher this morning, but so far has been unable to make back yesterday’s losses. As things stand, it looks as if it could just as easily hit $21 or $23 in its next big move.