Gold holding at initial support thus far

Gold has dropped into the first zone of support noted on the price chart near the $1720 level and has thus far held as dip buyers surfaced. That buying was fostered by a weaker Dollar which was lower in today’s session but has not broken down decisively yet below the critical 79 level.

Surging crude oil and gasoline prices did help gold today as some traders are concerned that the rise in energy costs will eventually feed through and impact the price of other goods and services  in the broader economy. Transportation costs can only be absorbed for so long.

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