Precious Metals Preview: COMEX Gold Sees Modest Support

2 May 2022 , 12:57 AM

COMEX Gold futures stayed supported in last week as bargain buying continued to pick up in the metal following recent spate of losses. The traders continue to watch global geopolitical scenario nervously as NATO deputy secretary-general Mircea Geoana has reportedly stated that it could be years before the Ukraine war is over. This brings in a whole new dimension to the current state of war that has started a little more than two months ago.

In another critical development, the US President Joe Biden has asked Congress to approve a record $33 billion aid package for Ukraine, including more arms. Russia has also confirmed that it launched multiple missile strikes on Ukraine yesterday, including in the capital city Kyiv. These are not very positive updates for stability and Gold is riding high on them. Also, the evidence stemming from the recent Gold Demand Trends from the WGC is keeping the metal well cushioned.

The COMEX Gold futures ended just under $1900 per ounce, up marginally on the day after hitting above $1910 per ounce earlier in the session. This marks an excellent rebound from a two and half month low of $1870 per ounce earlier in the week. Given the current breakout in the metal and plethora of supportive news items, the current rally could extend further.

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