Gold Update

Spot gold holds at $629.75/oz after trading in a $627.40 to$630.60 range.

Its Important to look at oil because it has been one of the major drivers of commodity markets in 2006 and the correlation between oil and gold has been stronger than that of gold and the dollar.

This correlation has been more spotty, both oil and the dollar appear to be equal driving factors for gold - although neither is dominant.

This does illustrate that it is hard for gold to rally if both the dollar is firm and crude oil weak.
However it is expected for Gold to push high very soon, due to USD$ Index to start its weakning and Crude Oil to rally soon, with OPEC to cut production.

Its good to see how Gold is reacting, with further strength and interests developing in the Market.
A Key to Buy at Dips, With Strong Support at 626.70 and 620.40. Eventually its important to keep an Eye on Crude Oil Prices