In the early morning trade, June gold is trading in the red again and currently trading at $1,575 and continuing it’s more than $120 sell-off from last week’s high of $1,707. With everything going on this week gold should have been a safe-haven, but it was the exact opposite. For example, the Feds coming up with quantitative easing and China stepping up with another stimulus plan as the coronavirus gets more worse throughout the world. Those two actions should of help, but too many people probably had to meet margin calls, so they had to sell their gold. Over time, I believe gold should prop back up as they take effect.
If we look at the daily June gold chart, you’ll clearly see that the uptrend was broken this week and is now in bullish trend. However, forget the technical because the fundamentals are going to drive this market in its next direction.