Gold was down $19.40 to $886.80 per ounce in trading in New York yesterday and silver was down 50 cents to $16.66 per ounce. The London AM Gold Fix at 1030 GMT this morning was at $883.50, £446.51 and €566.38 (from $900.75 £455.85 and €572.09 yesterday).
Gold again fell below short term support at $900 and we are now retesting support at the early April lows of $870. We expect strong support at these levels but there is a possibility that should gold close below $880 we could retest previous resistance at the 1980 nominal high of $850 per ounce. It is important to remember that even after gold’s recent sharp selloff it remains up for the year to date and up strongly for the last 52 weeks unlike major equity indices (as seen in the table).