Gold Falls on Speculation Rally Was Overdone; Silver Climbs - Kitco

Gold fell, erasing earlier gains, on speculation a five-week rally to a 27-year high was overdone. Silver rose, capping the biggest weekly gain in 10 months.

Gold's 14-day relative strength index topped 80 yesterday and has been above 70 since Sept. 6, a signal that prices were poised to drop. The metal is still up 2.9 percent this week after the dollar touched a record low against the euro. Five of the past six bear markets in the dollar boosted gold.

"Gold is in overbought territory,'' said Nick Ruggiero, a trader at Eagle Futures Inc. in New York. ``If the dollar starts to rebound a little, we'd probably see some selling in gold.''

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Posted by Posted by Jewelry News at Saturday, September 22, 2007 7:14 AM
Categories: gold, Palladium, Jewelry News, Precious Metals Report, Platinum, Silver
 

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