Wednesday, May 27, 2009

Today in Gold: Wednesday, May 27

Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:

"US gold ends flat as oil rises, dollar up"
Author: James Pethokoukis

Main Points: Gold finished the day unchanged, settling at $953.30 an ounce. The price was as low as $946.20 and as high as $959.60 during the day.

The initial drop was in response to a strengthening dollar, but then rose amid a crude oil rally.

Analysis: There are opposing forces involved, which makes upward momentum difficult and raises doubts about passing the $1,000 level sometime soon. The dollar strengthens, gold will drop; but as the economy rebounds, inflationary concerns increase -- and gold will rise.

This is the first time that gold dropped on the second session of a week during the past three weeks. Thursday will be a key indicator.

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