Gold closed today's Asian dealing up 2% for Yen investors from Friday last week, but only thanks to a dip in Japan's currency. Traders are still unwinding their gold bets ahead of year-end, leaving the metal to trade sideways in Dollars, Euros and Sterling.
"[Gold is] largely hemmed in by the bearish influence of a stronger US Dollar on the one hand, and the bullish influence of surging oil prices on the other," according to James Steel, a metals analyst at HSBC Securities in New York.
"The only prevailing factor these days is definitely the Dollar strength or weakness," another analyst reckons. "Gold is trading in a range, attracting only little interest."
Foreign exchange traders are watching US inflation data today (due 13:30 GMT), after the Dollar was buoyed yesterday Thursday by news US jobless claims fell in the week to Dec.9. Citigroup also issued a note yesterday saying the US economy will accelerate in 2007.
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