Gold prices going down as dollar comeback is on the cards
Bullion fell yesterday as the dollar rallied 0.5 percent on stronger-than-expected U.S. April retail sales dataTammy Wall
14 May 2008
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Gold traded near a one-week low in Asia as the dollar's rally against the euro paused before a report that may show U.S. consumer prices increased in April. Bullion fell yesterday as the dollar rallied 0.5 percent on stronger-than-expected U.S. April retail sales data, Darren Heathcote, head of trading at Investec Bank Ltd., said in a report today. The currency may gain further today on a government report forecast to show inflation increased, bolstering the case for a halt in the U.S. interest rate cutting cycle. The currency's rally makes ``dollar-denominated commodities more expensive,'' Heathcote said. ``In addition technical chart weakness added to the selling pressure and all eyes are on for a possible break of the support at $845.'' Gold currently trading at $864.60 as of 8:22 am, GMT.
Finotec Analysis Team
14 May 2008
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