| Gold bulls had a rough start to the week as the yellow metal has been selling off due to the strength of the U.S. dollar and signs that Greece is nearing a deal with creditors. For most of 2015, gold has been trading in a range around $1,200, struggling to find conviction to the upside or downside as fundamentals are trumped by speculation of an interest-rate hike and Greece's ability to pay debt.
It has mostly been more of a technical trade. Commodities are priced in U.S. dollars, so as the greenback moves higher, instruments like oil and gold generally move lower, and the inverse applies due to the strong correlation in the moves. Commodities move on other fundamentals such as supply and demand in addition to the U.S. dollar...............................................Full Article: Source |