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ggoldbbugon Aug 07, 2007 9:43am
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Gold not looking good this morning....
Gold not looking good this morning....Gold dips ahead of Fed meeting, focus on dollar
Tue Aug 7, 2007 11:03 AM BST
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By Atul Prakash
LONDON, Aug 7 (Reuters) - Gold eased on Tuesday ahead of the U.S. Federal Reserve's policy meeting later in the day, with investors watching the currency market for clearer direction.
Trading volumes remained low in the holiday period, exposing the metal to sharp price fluctuations, analysts said.
"We would expect gold to recover towards $672-$675 an ounce in the short-term, but we don't exclude a short travel to $668 before we move back higher," said Frederic Panizzutti, metals analyst at MKS Finance.
"But overall it's a pretty quiet market due to holidays and the dollar is going to be the key factor in the coming days," he added.
He said that anything affecting the currency should be considered as an important factor and the Fed meeting is definitely something that could affect the dollar's value.
Spot gold inched down to $669.30/669.90 an ounce by 0941 GMT from $671.05/671.65 late in New York on Monday, when it rose to a one-week high of $676.50. Continued...