Tuesday, January 19, 2010

Gold In Narrow Trading Range, Breaks Slightly To Upside

The U.S. Dollar Index mostly held above 77.5 today, and didn't fall much when below that level. After somewhat of a recovery from its early-morning slide, gold was marking time above $1,130 late morning.

The pusher-downers that normally surface mid-morning were absent. Instead, gold drifted and later rose up despite the greenback being stuck in its own trading range (although at the lower end right now.) The rise-up took the metal up above $1,138, but gold has since drifted down slightly.

Update: Not much happened subsequently. Gold's been in a tight trading range, centered at just below $1,138. At the close of regular trading spot gold hit $1,137.60. Similar calm has prevailed in the greenback market, with the U.S. Dollar Index in a tight range centered at just below 77.5.

In other words, both have found equilibriums. Real equilibriums don't last long, but gold's $1,125-$1,140 trading range - except for short-term moves - has held for almost two weeks now. It's still holding now.

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