Gold Is Vulnerable To A Correction In The Short-Term…Prior To Month-End

June 26, 2019

Gold prices look set for their first decline in seven trading days today. Gold fell over 1.1 per cent during Asian trading hours and has remained weak in European trading. 

Gold fell as traders took profits on their recent rapid gains. A slight change in the Federal Reserve’s ‘mood music’ with hints that aggressive interest rate cuts may not happen may also have contributed to gold’s pullback as the dollar rose.

Gold has risen in the six previous consecutive trading sessions and gold prices reached a more than six-year high of $1,438.60 on Tuesday. Given the speed and scale of the recent rise in gold, profit taking and a correction was to be expected.

It is gold’s biggest percentage decrease in almost three months and follow through selling will likely be seen.

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Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

One cubic foot of gold weighs more than half a ton (1,306 pounds).