Gold Update

Comex gold lacked upside momentum heading into the close and ended the session lower after quietly trading in positive territory for most of the session.

A weaker dollar and early firmness in crude oil helped the metal maintain gains on the day but a reversal in oil below the $58 a barrel mark weakened gold's upside potential in a day that lacked market-moving news, traders say.

After the close, April gold is down $1.40 at $657.30 an ounce. The yellow metal faced technical resistance that caused it to stall. The combination of dollar weakness and energy-led inflation concerns, coupled with strong physical and fund buying paints a very positive picture, suggesting once the selling is satisfied gold will be quick to move higher, and could potential look to target $676 in a short space of time.