Gold Sideways, Draws Only Modest Support From Softer Dollar

By Allen Sykora of Kitco News;

Comex gold remains within its recent sideways consolidation range although it is getting modest support from the softer U.S. dollar, says Charles Nedoss, senior market strategist with Olympus Futures. As of mid-morning Friday, the June futures have been confined to a band of $1,631.20 to $1,659.60 so far this week. The contract was up $4.20 for the day to $1,645.60 an ounce. The dollar index is having trouble breaking back above its 10-day moving average and was down 0.432 point to 79.275 as of 10:25 a.m. EDT. A weaker greenback often encourages buying of gold as a currency hedge. “I think if the (gold) charts looked a little better, you’d see a lot better rally,” Nedoss says. “I think you still have people licking their wounds here.” Some “bottom fishing” is taking place after recent declines, Nedoss says. “But I don’t think you’re seeing any big buying coming in,” he says.


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