Gold way overbought...
[??? take with spoonfull of salt too I think, commercials still short ? ...pb]
ananova.com
Metals - Gold firm but off highs in late trade as dollar makes up lost ground
Gold was firm but off five and a half year highs in late trade as the dollar made up some lost ground, dealers said.
Overnight, gold went over $350/ounce on concerns about imminent war in Iraq after the US administration poured scorn on Iraq's weapons submission to the United Nations Security Council.
"It went too far and too fast," said Stephen Briggs, commodities analyst at SG. The dollar's recovery today has helped gold come back a bit.
"It's a pretty clueless market and gold is just the biggest beneficiary of this uncertainty," said Briggs.
He reckons gold may come under pressure as the market is "terribly long".
James Moore of thebulliondesk.com also reckons that gold will lose ground during the Chirstmas holiday season and Monday's holiday in Japan.
"These factors, combined with strong oil prices, the dollar looking set to trade lower, the threat of terror attacks in the US and UK and the possibility of another Gulf War will make the market very nervous for the next few months and give the yellow metal the potential to make further gains," said Moore.
At 4.46 pm, gold was $2.1/ounce, or 0.6%, higher at 346.60.
Elsewhere, base metals were foundering on worries about the impact of an Iraqi war.
Copper was $8/tonne lower at 1,588 and aluminium was $11/tonne down at 1,372. Nickel was the heaviest hit, down $110/tonne at 7,125.
© AFX News |
