21.07.2016 - Dollar Strength Is Finally Weighing on Gold and Other Commodities
The strength in the dollar against commodity currencies as well as the Euro is weighing on gold. As the U.S equity markets set daily record highs and the dollar gains upward momentum, the liquidation of commodity length is having trouble attracting fresh length. Volumes this week in both the underlying futures and over the counter trading have been muted as if hedge funds have started their summer holidays early. It seems that once the Dollar index broke through 97, the technical funds/algorithmic traders hit metals and energy bids in tandem. Gold doesn't seem to have a big technical level beneath the market for some time but I believe $1300-to-$1305 will be major support...............................................Full Article: Source
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