Gold futures closed somewhat higher today as manufacturing data in China and the United States put recession worries on hold.
Gold for June delivery (COMEX:GCM9) - see the chart here - climbed 0.1% or $1.20, closing the session at $1,295.40 an ounce, while May silver (COMEX:SIK9) tumbled 0.3% or 3.8 cents closing at $15.061 an ounce.
“While gold has the potential to sink further in the near term, the medium to longer term outlook remains in favor of bulls,” wrote Lukman Otunuga, analyst at FXTM. “Geopolitical risks in the form of Brexit, uncertainty over U.S.-China trade talks and a dovish Federal Reserve are likely to continue supporting gold,”
Otunga added that gold is expected to test support near $1,280 in the near term, and a breakout above $1.300 will allow gold to “jump back into the game.”
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