Gold 27 June 2205
Joe
LONDON (Reuters) - Gold dipped slightly in Europe on Monday from the
three-month high reached on Friday at $443.60 per ounce, but analysts
were keeping faith with the prospect of more gains this week.
"In the short term, a test of $447 and $450 will be on the cards --
possibly even this week," analyst Ross Norman of TheBullionDesk.com
said.
Gold had stopped short of this year's peak of $446.70 an ounce, hit in
March, because of profit-taking and book-squaring.
Spot gold had eased to $439.20/439.90 by 1015 GMT from $440.20/440.90
late in New York on Friday.
Currencies were supportive, with the euro regaining its poise as
investors snapped up the oversold single currency, encouraged by an
improvement in German business confidence.
Although a weaker dollar makes gold and other metals denominated in the
currency cheaper for non-U.S. investors, the market has not been
entirely faithful to currency fundamentals of late.
Gold, which has gained some 6-1/2 percent this month, has at times
broken free of its normally tight inverse relationship with the dollar
to hit the recent peaks while the euro tumbled to its lowest in 10
months against the dollar.
"Despite the difficulties to break $440/oz convincingly, we stick to
our rather positive opinion as far as the medium-term direction of the
gold price is concerned," Hereaus Precious Metals' Wolfgang
Wrzesniok-Rossbach said in a daily report.
The report added that $448.50 was the next upside target, with a test
of last December's 16-1/2-year peak of $456.75 then seen possible.
SG Corporate and Investment Banking was also bullish on gold in its
quarterly commodities review, saying prices might rise above December's
peak to $475. That would be its highest since January 1988.
In other metals, silver was lower at $7.23/7.26 from $7.25/7.28 in New
York on Friday.
Platinum stood at $889.50/894.50 from $892.00/896.00 while palladium
was at $186.50/190.50 from $187.00/190.00.