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Gold and dollar feeding off one another

By   || March 9, 2010 at 13:57 GMT
|| 1 comment || Add comment

Comments from China’s SAFE overnight that gold will not be a huge part of their reserves going forward took more steam out of the sales of the yellow metal, pushing prices as low as $1110 this morning. A stronger dollar is contributing to weaker gold, just as weaker gold is contributing to a stronger dollar. Keep an eye on that relationship today.

AUD/USD dipped briefly below the 0.9060 level where the 100-day moving average lies. Small stops lie below that level while larger ones are perched in the 0.8935/40 area, traders say.

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One Response to “Gold and dollar feeding off one another”

  1. Trading Nymph on March 9th, 2010 17:09 GMT

    UK Reuters article pointed out that some dealers think the country would not buy bullion in
    the open market, as it costs less to buy from domestic mines..fwiw

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