Gold News

Gold stuck between oil and the Dollar

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.

But is that really the case? For a detailed analysis of the US economy's near future, read the renowned Dr.Kurt Richebächer – click here now...

Adrian Ash is director of research at BullionVault, the physical gold and silver 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 is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.

See the full archive of Adrian Ash articles on GoldNews.

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