April 30, 2010
June Gold Trading Higher; Weak Dollar Catalyst Behind Move
June Gold is stronger overnight buoyed by the weaker Dollar. On Thursday the market struggled throughout the trading session despite the weaker Dollar. Traders seemed to
be adjusting their long positions now that it appears the demise of the Euro has been overstated. Earlier in the week, speculators drove up gold as they hedged against the possibility of a Euro
collapse.
Gold traders may attempt to hold gold high in the recent trading range until the Greek resolution is reached. Furthermore, traders may be holding gold up because
financial problems still linger in Spain, Portugal and Ireland. A weaker Dollar is likely to also underpin gold. In summary, it looks as if it is going to take a lot of fundamental changes to weaken
gold.
U.S. equities are called higher on optimism that a Greek bailout package will be worked out soon. In addition, Wednesday’s Fed policy statement said that interest rates
would remain low for “an extended period”. Both …
