Gold near $800/oz is vulnerable to a stronger dollar: analyst

摘要

Gold is "greatly oversold" while the metal's price remains close to the $800/oz level, but it remains vulnerable to a further decline to the $790-800/oz range, "or even briefly lower," according to the latest Market Update by American Precious Metals Advisors.rnThis scenario is all the more possible if the dollar continues to gain ground against the euro.rn"I believe any decline below $800/oz, however deep, will be short-lived as price-responsive physical demand increases in tandem," said APMA President Jeffrey Nichols. He noted that the dollar's newfound strength was prompted by signs of deteriorating economic activity in Europe and this "undercut gold, just as the metal looked like it might hold and build support around $830/oz."