LONDON (Commodity Online): Gold prices are lower heading into late Friday trading in the North American session, pressured by strength in the dollar, said Charles Nedoss, senior market strategist at Olympus Futures.
"I think the dollar is a bogus rally. There's talk that maybe we'll see interest rates rise in the summer 2014, but that's such a far horizon. We don't know what they'll do next week, let alone in two years," he added.
Looking at very short-term technical charts gold made a new high for the day, but has traded lower, which is a bit price-negative. "It's an outside day down, so it's a bit negative," Nedoss continued.
Support for gold is at $1,724, which should be a solid foundation for the metal to use on a rebound. He's also watching how the dollar reacts for gold's next move, noting the greenback has found resistance at moving averages. If that happens again, gold could rebound. "Gold is trading tick for tick versus the dollar," Nedoss concluded.
