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Gold Recovering

  1. Gold starting to recover after last nights dumping.

    Interesting that some dealers are starting to call it the end of the bull run in gold or at very least a leveling out in the price for the near future.

    Below is an article from Kitco

    HONG KONG, Aug 20 (Reuters) - Spot gold, pummelled in overnight trading, clung to the US$307 level in light trade on Tuesday while downward pressure from a strengthening U.S. dollar was expected to clear out more weak longs, dealers said. "With the dollar-yen coming back off its high, I wouldn't be surprised if it could touch a little lower later on in the day," said Peter Tse, dealer at Scotia Mocatta in Hong Kong. Spot gold was trading at US$307.30/7.80 an ounce at 0615 GMT, higher than the open in Hong Kong at US$307.20/7.70 and New York's last quoted US$306.30/6.80. Spot gold tumbled in overnight trading in New York on Monday, due chiefly to a stronger greenback, boosted by better Wall Street sentiment, and a lack of faith in higher physical gold demand in the coming holiday season. The dollar strengthened against the Japanese yen in active trade in Asia on Tuesday, boosting activity on the Tokyo Commodity Exchange (TOCOM) and encouraging arbitrage trading between spot gold and TOCOM gold futures. At 0615 GMT, the dollar was trading at 119.02/9.07 yen. "We saw mainly Japanese buying today," Tse said, refering to spot bullion. Technically, spot gold appeared to completing a correction phase begun after hitting a near-term high of US$330 in early June. Momentum indicators on both the daily and weekly charts were all turning down, suggesting a longer period of consolidation with downside to US$300 possible by mid-September, traders said. Trade in gold futures on the Tokyo Commodity Exchange (TOCOM) was very active throughout the day. The benchmark June 2003 <0#JAU:> was trading 15 yen lower at 1,174 yen ahead of the close. Turnover was a hefty 72,607 lots. Gold Aussie was also sharply lower, at A$564.68/6.12 an ounce, while the Australian dollar managed to hold at US$0.5439/44. Hong Kong tael gold , which is traded on the Chinese Gold and Silver Exchange, ended the morning session at HK$2,860 a tael, higher than the open at HK$2,857. A tael is equal to 1.203 ounces of gold. Kilogold on the Hong Kong exchange was quoted at HK$77.00 a gramme at the end of the morning session, unchanged from the open. Spot silver was also unchanged from the open at US$4.41/4.43 an ounce.

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