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Gold futures on Tuesday bounced off a roughly five-month low and were on pace for the sharpest one-day gain in three weeks to kick off the last month of 2020.
Some dealers say that a “technical breakdown” of the yellow metal’s prices that had come on the back of progress toward a COVID-19 vaccine has run its course and could pave the way for a reassertion of bullish momentum in the commodity.
“The selloff in Gold lead to a technical breakdown which we think has now run its course,” wrote Peter Cardillo, chief market economist at Spartan Capital Securities.
“However, while we are not sure as to whether or not prices may retest their recent lows, we do believe the worst of the decline is over,” the analyst wrote on Tuesday.
February gold GCG21, +1.87% was up $32, or 1.8%, at $1,812 an ounce, following a 0.4% decline on Monday that saw it mark its lowest settlement since July 1 and log a 5.6% decline in November.
March silver SIH21, +4.34%, the most-active contract, rose 88 cents, or 3.9%, on Tuesday to trade at $23.490 an ounce, after slipping 0.2% in the previous session and falling 5.1% last month.
