Gold Sees Modest Buying On Slightly Weaker Dollar
(Kitco News)- Gold has seen a modest bounce off Friday's lower levels on aweaker dollar overnight. The fundamental dynamics suggest gold will remainunder pressure until there is a discernible reversal in dollar sentiment. Weare seeing some support lining up at the $1,265 level, with upward momentumcapped at the $1,278 area. Retail buying has begun to emerge, which suggestsinvestors remain engaged, albeit looking for lower entry points. As we approachJuly, there should be a discernible drop in volume but that is not necessarilya bearish outcome. In past cycles, when lower prices enticed buyers in quietmarkets, the demand surge caught producers by surprise and premiums rockedhigher. Physical premiums remain at historic lows for investors looking to addto their holdings.
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