After reaching $1062 yesterday as the EUR/USD pair breached the $1.50 level, Gold prices lost ground and currently trading in the $1054 -$1058 price range.
The release of the Beige Book report yesterday evening which stated that most regions reported little or no increase to wage or prices pressures an weak consumer spending, had little immediate affect on USD levels. However, the rather disappointing news as well as a widely followed analyst cutting his rating on Wells Fargo dampened Wall Street mood with the Dow industrials felling 92 points, furthermore the phenomenal drop in Dollar Value brought on concerns that this extremely low level is unsustainable. These factors contributed to a strengthening in the Dollar and a consequent drop in commodities prices’.
While the overall trend for Gold still maintains an upward direction, it appears that for the moment range trading with occasional upward breaches seems to be the dominating trend.
