Thursday, June 18, 2009

Today in Gold: Thursday, June 18

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 down as dollar rises, funds unwind"
Author: James Pethokoukis

Main Points: Gold for August delivery remained rather steady today, dropping $1.40 to settle at $934.60 an ounce. The price was as high as $944 throughout the day, but couldn't sustain any momentum once the dollar turned stronger against the Euro.

Reports also are coming in indicating a lack of inflation, often seen as a driver for higher gold prices. That said, talk of increased US government financial regulation could favor gold, according to James Steel, chief commodities analyst at HSBC.

Analysis: After a very volatile few weeks where gold consistently endured double digit losses, things appear to be settling down for the time being. After a $13.20 tumble on Monday (and a $21.30 drop the previous session), gold has largely remained in a $5 range. Does this mean that the commodity has hit a temporary bottom?

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