This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold Could Get a Boost From Weaker Dollar

NEW YORK ( TheStreet) -- Spot gold prices traded higher on Tuesday. As of this writing, spot gold is quoted at $1586.30.

The precious metal saw a nice pop higher after the U.S. dollar index ($USDX) sank while the euro rallied to the highest level since the first week of March. In addition, it is quite likely that additional shorts in the market have elected to throw in the towel, thus helping drive bullion prices higher.

Although the dollar bulls remain largely in control, the dollar index is in danger of rolling over. Should this occur, it will likely give gold a much-needed boost to gain more upside technical momentum.


Demand for physical gold appears to remain robust as investors look at recent weakness as an opportunity to add to physical holdings while gold is "on sale."

From a technical standpoint, the gold bears are still in the driver's seat, and bullion bulls need to produce a solid close above $1,600 to attract fresh buying interest. Currently, spot gold is just shy of its 20-period exponential moving average (EMA), which comes in at about $1,588. Should the market take this out to the upside, it sets the stage for a test of $1,600. The bears need to take out support at last week's lows to confirm further weakness.

The market will be paying close attention to Ben Bernanke and the FOMC minutes tomorrow. The minutes may give clues as to the Fed's timeline on a potential removal of stimulus, which could move gold prices. As discussed previously, gold remains a range-bound market in the grand scheme of things until proven otherwise.

Please visit our Web site for updates on the gold market and useful information for purchasing the physical metal.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Matt Zeman is a trader at Kingsview Financial. He began his trading career as a runner in the grain pits at the Chicago Board of Trade before becoming an arbitrage clerk. Eventually he started trading equity options and stocks. Matt now is a full-time futures broker and also authors a blog for gold investors at Appreciate Gold. He has been a frequent guest on CNBC, Fox and Bloomberg, and provides his views on the stock, bond and futures markets for financial media including Dow Jones, the L.A. Times and The Associated Press. Matt is a member of the Chicago Board of Trade, and carries series 3, 7 and 66 licenses.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs