Gold seesaws in wide range, attempts to regain momentum

AFTERNOON UPDATE

(USAGOLD – 2/26/2020) – Gold is attempting to regain momentum today with the price seesawing in a wide range between $1654 on the high side and $1627 on the low side.  At the moment, it is trading in the area of $1640 and level on the day. Silver is down 16¢ at $17.88.  Market sources cite the spreading coronavirus, sharp corrections in global stock markets, recession fears, and anticipated central bank easing to mitigate the fallout as pushing the upside. As for the recent correction off eight-year highs, Forex trader Tony Sycamore offers an interesting insight at the CityIndex website. “A second reason why gold may have underperformed over the past 24 hours,” he says, “is after this week’s sharp fall in equities, some funds are likely to have suffered losses on their equity books. As such, they may have moved to take profit on their winning trades e.g. long gold and silver to pay for their losses elsewhere.” For the patient accumulator, he goes on, this type of “de-risking or position wash” presents “an opportunity to buy gold at better levels.”