Gold is slowly recovering from last week’s declines, where futures contracts lost 1.65% Friday. The pullback came mere days after the precious metal jumped above $1,800 an ounce, after a better-than-expect reaction of US retail sales and other factors.
Around 11:30 EST (UTC-4) gold was up 0.09% to $1,769.20 (£1,289.57) per ounce.
On Friday, the US Census Department reported US retail and food service sales rose 0.7% in September, suggesting Americans are becoming less fearful of the delta variant and are willing to spend more on shopping and dining.
The increase beat an estimate of a 0.2% decline, said Carlo Alberto De Casa, market analyst at Kinesis Money.
“Overall, in the last few trading sessions we have seen an increase of volatility on the gold price, with a bullish acceleration on Wednesday, followed by a correction Friday,” he told Capital.com.
Additionally, from a technical standpoint, De Casa said the gold market is witnessing some “interesting” rebound signals as buyers are “showing strength” when the price gets closer to the support zone of $1,750 an ounce.
Despite this, the rebound to $1,800 an ounce was probably too quick, and sellers again added pressure on gold, he opined.
“This quick bearish impulse was helped by the positive macroeconomic data which revamped the risk-on scenario on the markets. We should anyway point out that also in this case buyers reacted quickly, holding the price above the level of $1,760,” he said.
Unlike gold, silver futures declined during mid-day trading Monday, losing seven cents to trade at $23.30 an ounce.
Like gold, future prices bounced around last week, slowing down Friday afternoon after a week of small gains.
“Despite the decline seen in the final part of last week, the main trend seems to be changing, as silver is still two dollars higher than the bottom reached in the final days of September,” De Casa said.