By Barani Krishnan
Investing.com - Gold snapped a three-day losing streak to post a modest half percent gain as the dollar came off its relentless highs on Thursday.
The yellow metal’s turnaround came after a precipitous drop of more than $90, or nearly 5%, from Friday’s session highs of above $1,968.
Yet, the silent but deafening question around the market was whether this was merely a pause, or the start of a slow, steady reversal.
That both the key contracts in futures and bullion were just slightly in the positive after the settlement on Thursday indicated that all might not be well yet with gold.
”The indicators are still bearish,” gold chartist Rajan Dhall said in a post on FX Street.
“Longer-term this trend could still be an uptrend (weekly and monthly timeframes) but at the moment traders and investors are looking to time the retracement,” Dhall wrote. “It is very hard to catch a falling knife and predict how far these moves will last but keep an eye on the resistance zones and this retracement could move further.”
Spot gold, which reflects real-time trades in bullion, was up 5.40, or 0.3%, at $1,868.92 by 2:41 PM ET (18:41 GMT), sliding from a session high of $1,877.11. The bullion indicator plumbed a two-month low of $1,856 on Wednesday.
On the futures side, U.S. gold for December delivery settled up $8.50, or 0.5%, at $1,876.90 per ounce, after peaking at $1,880.85.
The Dollar Index, or DX, which tracks the greenback’s performance versus six currencies, was down 0.1% at 94.433, off a two-month high of 94.653 set earlier in the session.