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Gold Sees Modest Buying On Slightly Weaker Dollar

Commentaries & Views

(Kitco News) - Gold has seen a modest bounce off Friday’s lower levels on a weaker dollar overnight. The fundamental dynamics suggest gold will remain under pressure until there is a discernible reversal in dollar sentiment. We are seeing some support lining up at the $1,265 level, with upward momentum capped at the $1,278 area. Retail buying has begun to emerge, which suggests investors remain engaged, albeit looking for lower entry points. As we approach July, there should be a discernible drop in volume but that is not necessarily a bearish outcome. In past cycles, when lower prices enticed buyers in quiet markets, the demand surge caught producers by surprise and premiums rocked higher. Physical premiums remain at historic lows for investors looking to add to their holdings.

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