OsterDowJones: Comex Jun gold futures were fluctuating
Comex Jun gold futures were fluctuating in a $390.50- to $393.80-per-ounce range Wednesday morning on the back of initial U.S. dollar weakness but waned over time on a lack of follow-through interest, OsterDowJones reports.
A lack of sustained buy-side interest from the speculative community has been plaguing gold so far this week and prevented prices from making a more pronounced recovery despite extensive U.S. dollar weakness and increased geopolitical uncertainty of late.
The U.S. dollar pulled back sharply against the euro and other currencies Tuesday and overnight in the wake of the Federal Reserve's decision Tuesday to leave interest rates unchanged and adopt a "measured" approach to raising them in due course should conditions dictate.
While this shift in posture from a more accommodative stance earlier was widely expected, its coming into being prompted players to take profits on bets made earlier and knocked about 2% off U.S. dollar values against the euro within the past two days.
Usually such a decline would render gold an appealing alternative to the greenback, especially given the recent rise in terrorist activity in Iraq and overnight bombings in Greece.
However, many speculative players are deemed to be still reeling from the sharp decline in Jun gold prices during April from a high of $433 to a low of $380.60, and are subsequently reluctant to re-enter the market with any vigor.