Gold Trading in Wide Range But Seen Steadier at Week End

Source:

"We are trading in a range and there is no sign that we are going to break out of the current wide range in the near term," said Wolfgang Wrzesniok-Rossbach, head of marketing at Heraeus, a German precious metals trading group. "We have an all-time high in the oil price and a near record high in the euro-dollar, but gold is still $100 away from its own historic highs. Probably there are some more long positions waiting to be sold, once gold goes up again," he added.

Gold steadied on Friday despite positive factors such as a weaker dollar and a rise in oil, and analysts said the market was looking for price triggers to break the current trading range.

The catalyst could come from sharp changes in the currency and the energy markets or heavy buying form investment funds, betting on strong returns in the long term, they said.

Gold was quoted at $924.90/925.70 an ounce at 1020 GMT, against $925.90/926.70 in New York late on Thursday and a record high of $1,030.80 on March 17.

We are trading in a range and there is no sign that we are going to break out of the current wide range in the near term," said Wolfgang Wrzesniok-Rossbach, head of marketing at Heraeus, a German precious metals trading group. "We have an all-time high in the oil price and a near record high in the euro-dollar, but gold is still $100 away from its own historic highs. Probably there are some more long positions waiting to be sold, once gold goes up again," he added.

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