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FXTM: 'Dollar Always Has The Final Say' In Gold Price Moves

Kitco News

Gold is on the defensive as the metal remains under the influence of the stronger U.S. dollar, says Lukman Otunuga, research analyst at FXTM. “The price action witnessed in recent weeks confirms how the dollar always has the final say in where the yellow metal trades,” the analyst says. “Although the unfavorable market conditions and geopolitical risk factors have attracted investors towards safe-haven gold, the precious metal remains governed by ‘King Dollar.’” Technically, the analyst says, there is strong resistance at $1,228. “Sustained weakness below this level could inspire a move back down towards $1,218,” Otunuga adds. As of 7:39 a.m. EDT, spot gold was $3.65 lower to $1,222.50 an ounce. The December U.S. dollar index was up 0.12 point to 96.705.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Commerzbank: ETF Gold Holdings Higher So Far In November

Friday November 23, 2018 07:58

Gold exchange-traded funds tracked by Bloomberg had registered inflows of nearly 17 tonnes of the precious so far this month as of a Thursday report by Commerzbank. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. A rise in gold prices Wednesday, ahead of the U.S. Thanksgiving holiday on Thursday, was accompanied by ETF buying, Commerzbank adds.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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