Gold has not been the shiniest of metals as of late as the dollar continues to flex its muscles against the other commodities and currencies. Currently, as the precious metal trades near the 1,240, it heads for its fourth weekly decline out of five with the main reason being a strong dollar. However, this doesn’t stop just on gold, but there is also Silver and Palladium are on course as well for their longest run of weekly declines since 2015.
The bullion for immediate delivery is trading -0.65 to $1,240/oz in London meaning that prices are already down 1.1% this week. The Metal is trading near its lowest since December of last year and things are not looking up for the metal.
According to Carsten Fritsch, a Commerzbank analyst said “Gold remains completely composed. No matter what happens, the gold price does not nor rise to any significant extent. Why gold is not profiting from the current turmoil is something that puzzles us more and more each day. We [Commerzbank] believe the gold price to be undervalued and expect a noticeable recovery in the second half of the year.”
Despite the increased tensions between the U.S. and China and with the increase of tensions between the two, especially with the additional $200 billion worth of tariffs that the U.S. has imposed on China, gold has remained under pressure. Looking at the Relative Strength Index has fallen near the 30-level, which some chart watchers view that the “not so” precious metal has become oversold and is bound for a rally.