The gold price
Gold sells off as New York opens - 20 December 2006
"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 runs the research desk 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 TheStreet.com in New York; Germany's Der Stern and FT Deutschland; Italy's Il Sole 24 Ore, and many other respected finance publications.
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