What Could Impact Gold Today

The price of gold seen in positive territory as we start the trading day. For the past two days, there were 2 factors that were directly related to a selloff in the yellow metal. One was a stronger dollar and the other was profit taking in the gold ETF funds, as we witnessed large outflows of gold holdings.

Nonetheless, over the last few weeks, the gold market has built a strong foundation above the $1,200 dollar level and now some day traders believe any pullback is seen as a buying opportunity.

Silver trying to build a base above the $16.00 level, hoping also that any pullback in this price would be viewed also as a buying opportunity like her big sister gold seems to be enjoying.

Across the pond, physical demand for gold in India and China remains weak. In India, the six week jewelers strike is over. Dealers protesting an excise duty on gold imports curtailed demand, but now gold dealers are back in the market again.

Data to be released later today includes US Empire State manufacturing, industrial production, capacity utilization, University of Michigan consumer sentiment and inflation expectations. All or some of this data can impact the price of gold later today.