Gold has crawled a little higher ahead of the New York session today. European traders put a halt to the drop in Asia, sending the AM fix in London to $617.50 – the lowest fix since Nov.2, but nearly $1.50 up from Friday's close in New York.
"With Dollar sentiment improving and fund players
still positioned long ahead of year-end...the market remains
at most risk to further long liquidation," says HSBC bank in a note.
Today's major data release was US current account data for the third quarter, which came in at $225bn. Last week's tame US inflation data saw the Dollar hold firm, as the Euro slipped against everything. Sterling now represents the "anti-Dollar" for currency investors – including central bankers.
In fact, the Pound became the world's third reserve currency this year - which is just nuts! Click here to read why...