Is the gold market well supported with oil piercing through $73 resistance?
"Gold Climbs in New York as Lower Dollar Boosts Demand for Hedge
Gold rose the most this month in New York and London as the dollar fell to a two-week low, increasing the metal’s appeal as a hedge against further declines in the U.S. currency.
The dollar dropped 0.6 percent against the euro as German services and French manufacturing unexpectedly expanded in August, adding to signs the worst recession since World War II is easing. Gold tends to rise as the dollar falls.
'The U.S. dollar is a bit weaker and this is a supportive factor for gold,' Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. 'Gold seems to be well supported' with oil prices above $73 a barrel."