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Gold futures traded slightly lower Wednesday, under modest pressure a day after the yellow metal retreated from a more-than-seven-year intraday high.
June gold on Comex GCM20, -0.17% fell $5, or 0.3%, to $1,678.70 an ounce, while May SIK20, -1.00% was down 17.5 cents, or 1.1%, to $15.305 an ounce.
Gold remains up 2% for the week and on Tuesday topped $1,700 an ounce to trade at its highest intraday level since late 2012 in what analysts described as a short squeeze. Gold then lost steam to end the day lower.
“In the last few days we have seen an acceleration of the gold price as it seems that investors are starting to realize that central banks will be forced to print a huge amount of money and put in place other ultra-expensive measures to fight the coronavirus-induced crisis,” said Carlo Alberto De Casa, chief analyst at ActivTrades, in a note.
De Casa said the technical picture for gold remains positive with support seen at $1,640 an ounce — a level that previously served as resistance.
