Gold News

Gold sells off as New York opens

Gold ended the Asian session higher but has dipped as New York opened.

"There has been a bit of producer selling around in the last couple of days, so I am not too sure how much further it can do on the upside," says one London dealer.

On a technical analysis, gold bounced off its 100- and 200-day moving averages - around $612 and $617 - during yesterday's rally. Physical interest was also seen at these levels, says Reuters, when prices fell to a 7-week low on Monday.

"Our view is the Dollar is going to weaken a little more and, all things being equal, that's going to be positive for gold," says a precious metals analyst at Commerzbank Securities in New York.

Bullion is also the favorite pick for Deutsche Bank's chief metals economist, Peter Richardson, according to the Budapest Business Journal. "You have investors and speculators in the market because of the dollar," adds a dealer in Hanau, Germany. "Most of the outlooks for gold next year are pretty positive.”

Should you be buying gold now? The consensus sees little movement in the short term. It's also fixated on the Dollar price. For a different angle on what's happening right now, keep reading here...

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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