The current gold market momentum has not offered much relief. Albeit not many people expected a sudden price reversal, the overall gold market value keeps inching lower. It is still in the support zone, and gold futures show signs of moving higher.
More Sideways Gold Market Momentum
It is not entirely surprising to see the gold market resume its sideways trading pattern. No major developments have occurred, and there are no real macroeconomic events playing into the cards of precious metals either. The US Dollar remains level, with other foreign currencies doing nearly the same. As such, there is a lull in trading.
Even though there is this lull, the gold market is not off worse. The current support levels remain in place as the price per ounce hugs the $1.925 level. With no imminent drop to $1.900 or lower expected, this trend may resume for another few days, or weeks. That is not a bad thing either, all things considered.
What is of greater interest are the current gold futures. These vehicles are never an official market indicator, but they can shed some light on what the future may hold. So far, the contracts set to expire in October 2020 are trending slightly higher than the current gold market price. A sign of hope, perhaps, albeit no one knows what the next few weeks will bring.
Looking even further, the December futures are cause for some minor excitement and optimism. These prices are currently closer to the $1,950 range, although there is a good chance this slight uptrend will begin to flatten out in the very near future. There is absolutely no reason to panic for gold market watchers, but there is no real excitement ahead either.
Silver Follows a Similar Trend
It is remarkable how similar gold and silver have moved up throughout 2020 so far. What is even more intriguing is how the gains noted in the silver market have remained in place, for the most part. Silver futures are up by as much as 2.55% compared to the current price, indicating that the $27 range will remain intact.
Under the current financial circumstances, maintaining value is almost as bullish as gaining value. A lot of markets are unstable due to COVID-19, but precious metals have shown ample resilience. That will, in turn, bring more investors to the gold market, and by extension, the silver market. An interesting end of the year lies ahead.