Gold has given back most of yesterday’s gains, falling $13 to $1398. News that India extended curbs on gold imports is part of the reason for the decline. Another reason has been the troubling inability of gold to rally when the US dollar is sinking, something I warned about yesterday.

There are bearish signs near-term technicals are mixed. The hourly chart shows a series of lower highs over the past three days, which is bearish especially considering the USD weakness. However, the lows have also been higher over the past three days, suggesting some buyers are eager at the dips.

Gold technical analysis June 4, 2013

Gold hourly chart

The narrowing range is odd, given the high market volatility elsewhere, but it suggests the next move is a ‘go with’ — at least in the short-term.