Metals

Has Gold Lost Its Safe-Haven

Posted 06/05/2020 10:25AM CTNicholas DeGeorge

In the early morning trade after better than expected May non-farm payroll number this morning with a reading of 13.3%, gold has sold-off more than $40 an ounce and currently trading at $1681.0. The payroll number was supposed to come in over 19%, so this was seen as a big positive in the big V-shape recovery we are having despite all the recent chaos in this country over the past few months. After this week’s trading and today’s job report, gold has lost some of its safe-haven buying as it broke new weekly lows this morning. Poor global weekly reports and with the EU announcing a 1.3 trillion-euro stimulus package, gold has not been able to get a bounce to hold onto yesterday’s gains hinting the COVID-19 rally could be losing its steam. Look for support in gold roughly between $1670-$1650 or a breakout above yesterday’s high of $1729 an ounce.

Gold Jun ’20 Daily Chart

Nicholas DeGeorge

Nicholas DeGeorge began his financial career in the mortgage/ banking industry. After a successful seven year career, he had an opportunity of a lifetime to trade for one of the larger proprietary day trading firms at the Chicago Board of Trade. While there, he specialized in trading energy (mostly crude oil), metals and e-mini S&P 500. After two years of being a proprietary trader, Nicholas became a Senior Commodities Broker at MF Global and worked for the top commodity trading adviser at the firm. While he was there, he learned a great deal about position trading and was exposed to other markets like grains and soft commodities. Nicholas attended Eastern Illinois University.