Capital Gold Group Report: Last Chance to Buy Gold in a Consolidation before Typical Autumn Rally?
NEW YORK (MarketWatch) -- Gold futures lost more ground Thursday after tumbling more than $40 in the past two sessions, as the U.S. dollar continued to gain against other major currencies.
Gold for August delivery edged down $1.80 to $921 an ounce on the New York Mercantile Exchange.
"This week's slide in oil and the improved dollar tone could see risk
on the downside for gold, with inflation concerns tempering along with
the safe-haven bid," according to analysts at Action Economics. Over the past two sessions, gold has shed $40.90, tracking a sharp fall in crude prices. Ongoing dollar strength is putting some pressure on dollar-denominated gold.
The dollar index, a measure of the greenback against a trade-weighted basket of currencies, rose 0.6% to 72.93.
"The general tone of the dollar has improved in recent sessions, with the decline in oil prices, hawkish Fed comments, greater confidence that U.S. officials will not permit the demise of Fannie Mae or Freddie Mac and getting past another round of bank earnings all helping," wrote currency strategists at Brown Brothers Harriman.
Crude futures regained some ground early Thursday, following their sharp decline over the past two sessions.
"While gold has suffered strong selling in recent sessions, it is only working off an overbought position, and a correction and consolidation is healthy and normal," Mark O'Byrne, executive director at Gold and Silver Investments Ltd., wrote in a research note.
"This looks likely to be the last such sell-off prior to a strong rally into the autumn, as is typical," he said.
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