Gold & Oil Dips “Present Buying Opportunity” Says Chinese State Investment Advisor
November 30, 2009 by goldguru · Leave a Comment
By Adrian Ash, GoldSeek
London Gold Market Report
THE PRICE OF GOLD traded in a wide 1.5% range early Monday in London, bouncing fast from a dip to $1165 as world stock markets reversed last week’s gains and crude oil slipped below $76 per barrel.
The “safe haven” US Dollar rose on the forex market, alongside the Japanese Yen.
French and German investors looking to buy gold saw the price retreat to a four-session low by the AM Fix in London, down 1.1% from last week’s all-time record Fix of €787.24 per ounce.
Gold priced in British Pounds traded at £710 an ounce by lunchtime, some 2.3% below Friday’s new record intra-day peak.
“This has once again presented a [gold] buying opportunity,” says one Londondealer in a note today.
“Even when gold succumbs to cashing out, it faces renewed demand on dips,” agrees a Tokyo analyst, speaking to Reuters.
“We expect a certain amount of consolidation at these levels,” cautions the latest technical analysis from Scotia Mocatta.
“Signals are that the Dollar is due for something of a recovery soon,” says Phil Smith in his Reuters Gold Technical Analysis, “[and] the Dollar does influence the Gold Price to a large extent.”
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