Reply #40: Gold dips as traders eye dollar, Mideast (Wierd - inverse reaction)

[54anickel]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFF31A4F5%2DBB94%2D48BC%2D89B7%2D6816000FE995%7D&siteid=bigcharts&dist=news

NEW YORK (MarketWatch) -- Gold futures dipped Wednesday, as the dollar dropped against major currencies and as international talks on the Mideast conflict in Rome dead-ended with the United States rejecting calls for an immediate cease-fire.

snip>

"We remain in a consolidation phase for gold (with shades of negative sentiment) and are searching for more concrete direction in coming weeks," Nadler said.
Other metals prices traded mixed. Silver edged up 4.5 cents at $10.99 an ounce, while palladium dropped $2 at $315 an ounce, platinum declined $3.50 at $1,226 an ounce and copper was last down 4.6 cents at $3.415 a pound.

"In the current climate, position rolling is likely to be the main theme as traders continue to monitor the currencies and newswires for direction," said James Moore of TheBullionDesk.com.

However, Peter Grandich, editor of The Grandich Letter, said there appears to be a heavy "short" presence in gold, "based on the fact that gold has been hit hard on several occasions of late shortly after the second London fix when European physical buying is over.

"I believe these sellers are exhausting themselves and a short squeeze is near," Grandich said.

The dollar traded lower against major currencies on Wednesday, but if it rises later in the session it might put pressure on gold as has happened in recent days.

more...