Despite the rebound of European stocks, gold is unable to sustain any solid recovery and is still trading below $1,500. Yesterday we had a first attempt at a recovery, as the price rebounded strongly from the support level of $1,450, but the main trend remains unchanged. It is clear that the selloff of gold extends far beyond fundamental reasons as investors are still struggling to find cash for covering margin calls or rebalancing their portfolio amid these turbulent and volatile times. Cash, rather than gold, seems to be the real king in this scenario.
Oil continues to struggle as investors are seeing every rebound as a good time to sell. After the price managed to recover $30, it fell again this morning as gains on stock markets began to slow down. Volatility is dominating this bearish scenario, with a first support level at $28 and a second barrier placed at $28.50, while the first significant resistance is located at $31.50.
