Gold Down On Boosts Dollar Confidence!
Posted October 28, 2009on:
Gold Guru; Peter Schiff Said: The dollar collapses range 6% for 2009, the uptrend dollar currently in temporary session due to 0.3% increase for the last 2 days.
“Buy Gold In Long Position + Buy Dollar For Short”
Gold futures came under pressure from a higher U.S. dollar and price-chart considerations Tuesday, extending losses from the previous session. Weaker-than-expected consumer confidence data added to the pressure on gold. The Conference Board, a private research group, said its index of consumer confidence fell to 47.7 this month, from a revised 53.4 in September, and well below economists’ projection of 53.2.
The drop in consumer confidence helped the dollar advance, making hard assets less valuable, and signaling inflation isn’t a big risk anytime soon. “Stock prices are higher, oil prices are higher, gold is lower: It’s a clear indicator that the dollar is a driving force behind the gold rally,” summed up Bill O’Neill, a managing partner at Logic Investment Services. “Consumer confidence was anemic. It’s further evidence that there’s no imminent inflation. Gold is anticipating inflation, but anticipating it in the longer term.”
Gold bounced off session lows after finding resistance just above $1,030 an ounce, the long-standing record high it passed on Oct. 6. Afshin Nabavi, head of trading at MKS Finance in Geneva, said prices should stay in a $1,030-$1,070 range. He said gold moved lower due to the euro’s weakness versus the dollar. “I would say we are getting close to the bottom for gold,” he said. “This is the correction we were looking for.”