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Gold could move toward $1,570/oz before looking for
a base as the yellow metal has slipped below $1,678/oz, says Barclays Capital
based on technical analysis. "We expect a near-term setback in gold," the house
says. Spot gold fell 1.9% Tuesday, settling below key support at $1,700/oz for
the first time in six weeks as investors sought the safety of cash on renewed
concerns over Greece, a stronger USD and data showing weaker inflation. A
strong USD could weigh on dollar-denominated commodities ahead of the Greek
swap deal. Commodities priced in USD appear costlier to holders of other
currencies when the greenback rebounds. In silver, Barclays Capital says
downturn in silver has reached the house's target of $32.65/oz. Silver fell to
an intraday low of $32.49/oz Tuesday. Analysts at BarCap now expect further
downside in silver toward $31.80/oz. Spot gold is at $1,673.46/oz, down $1.14
and silver is at $32.83/oz, down 12 cents from its previous close.